GBP/USD rallies as Trump tariff threats against Europe weigh on US Dollar

GBP/USD is rallying as tensions between the US and Europe escalate due to US President Donald Trump's threat of imposing tariffs on eight European countries. This has pressured the US Dollar significantly, leading to a 0.28% increase in GBP/USD at the time of writing, with the pair trading at 1.3414. Investors appear to be maintaining a bullish outlook on the Pound amidst this context. From a technical standpoint, there is noticeable buying pressure indicating a potential break to higher levels. However, future fluctuations will depend largely on how the Dollar reacts. Should more specific tariff details emerge, it could lead to further volatility in the market. To sustain its upward trend, the Pound will need to maintain focus on upcoming announcements and the market's overall reaction.