GBP/USD plunges to 1.3414 as tariff relief fades, US data looms

GBP/USD has tumbled sharply to fresh lows around 1.3414 on Thursday, retreating significantly from Monday's multi-month peak of 1.3592, representing a decline of approximately 178 pips (1.3%). The initial optimism from a US court blocking certain tariffs has quickly dissipated as traders refocus on fundamental divergences between the UK and US economies. Sterling weakness reflects growing concerns about UK economic momentum, while the dollar benefits from expectations of robust US growth data. Markets are now eyeing today's US GDP revision and tomorrow's PCE inflation figures, which could reinforce hawkish Fed expectations. Technical indicators suggest the pair has broken below key support at 1.3450, opening the path toward the 1.3350 area. The sharp reversal from Monday's highs indicates a potential trend shift, with resistance now established at 1.3500. Traders should monitor US data releases closely for further directional cues.