Analysis of the pound-dollar pair

The pound is an economic dollar:

The GBP / USD pair fluctuated during today's trading on Tuesday, rising and falling relatively obliquely towards the downward trend, especially after Trump's plans to impose tariffs of 25% on all steel and aluminum imports to the United States, which raised fears that the increased tariffs may lead to increased inflation and limit the ability of the Fed to reduce interest rates as we mentioned here.

Also, the expectations of interest rate cuts during 2025 for the Federal Reserve are lower than the Bank of England, which is preparing for more cuts during this year, as we mentioned here the interest rate forecasts of major central banks until the end of the year.

The pound on the technical side:

The GBP / USD pair is trading inside a descending price channel on the four-hour frame, the pair is also trading near the resistance levels of 1.2290 / 95, where as long as we trade below we expect the pair to continue to decline to complete the shark harmonic pattern and also reach the lower limit of the descending channel at the levels of 1.2155, and before that an initial target at the support of 1.2280.

This scenario fails if the price channel breaks higher and the upper 4-hour candle closes at least approximately at the levels of 1.2424.