GBP/USD "Trump Comeback Could Drive Dollar Strength"FOREXCOM:GBPUSD Analysis – What’s Coming Next & How Trump Could Affect the Dollar
Right now, FOREXCOM:GBPUSD is hanging around 1.25000, and we’re expecting a bit of a pullback from here. But there’s more going on—Trump’s possible return to office could have a big impact on the U.S. dollar and how the pair moves in the future.
Pullback from 1.25000 – Headed to 1.27000
The market is at a key spot around 1.25000, which has been a point where price often stalls. So, a pullback from here is pretty likely. After that, we could see the price rise to 1.27000 before it drops again. This is a good spot to catch a short-term bounce.
Target: 1.22000
Once we hit 1.27000, expect the price to start heading lower towards 1.22000. This is a big support level, so we might see some back-and-forth here. If it breaks 1.22000, though, we could see the price drop further.
Trump’s Comeback – U.S. Dollar Could Get Stronger
Now, here's where it gets interesting. If Donald Trump makes a comeback and gets back into office, it could really boost the U.S. dollar. In the past, his policies helped the economy by cutting taxes and lowering regulations, which made the dollar stronger. If he returns, there’s a good chance the Fed might raise interest rates, which would make the dollar even more attractive to investors.
If the dollar strengthens because of Trump’s return, FOREXCOM:GBPUSD could see even more downward pressure. In fact, we could see the pair drop not just to 1.22000, but even lower—1.20000 or 1.19000. Worst case, the pair could even go all the way down to 1.40000 if the dollar really takes off.
What If It Breaks 1.22000?
If 1.22000 doesn’t hold, we could see a big drop to levels like 1.20000 or even 1.19000. With Trump potentially driving the dollar higher, the move down could be stronger than expected.
Quick Recap
Pullback from 1.25000, possibly heading to 1.27000.
After that, we expect a drop to 1.22000.
If Trump comes back, the TVC:DXY could get stronger, and FOREXCOM:GBPUSD could go lower—maybe even to 1.14000.
If 1.22000 breaks, look for further drops to 1.20000 or lower.
So, in short, there’s a solid setup for a bearish move on FOREXCOM:GBPUSD , especially with the possibility of Trump’s return pushing the dollar higher.
Have a good trades everyone!