The British pound is gaining value in the GBP/USD pair, correcting after the emergence of a "bearish" impetus the day before, when the instrument failed to consolidate at new local highs from May 7. The instrument is testing 1.3280 for a breakout.

During the Asian session, the GBP/USD pair is correcting around 1.3305 amid unstable dynamics of the American currency: the pound is supported by the Bank of England’s interest rate cut from 4.50% to 4.25% and negotiations between UK and US officials aimed at reducing tariffs on British imports.

The GBP/USD pair has adjusted to 1.3200, preparing to continue the upward dynamics. Yesterday’s weakening by 0.67% is due to the strengthening of the American dollar after the completion of negotiations between representatives of the US and China. The partners agreed to reduce import tariffs to 10.0% on the part of China and 30.0% on the part of the US for 90 days. 

The price is in a correction, a fall is possible.

On the daily chart, the correctional second wave of the highest level (2) formed, the third wave (3) started, and the first entry wave of the lowest level 1 of (3) ended. Now, the correctional second wave 2 of (3) and the wave а of 2 are developing. If the assumption is correct, the GBP/USD pair will fall to the area of 1.2925–1.2760. In this scenario, the critical stop loss level is 1.3407.

The GBP/USD pair is moving within a medium-term upward trend. However, three weeks ago, the quotes entered a sideways range of 1.3260–1.3427 and have not yet been able to leave it. Yesterday, the price dropped to its lower border under pressure from the results of the US Fed meeting on monetary policy.