Pound Rockets to $1.34 in 11-Day Rally, Faces Test at $1.3430

London, April 22, 2025 – The British pound is on a hot streak, climbing to $1.34 against the U.S. dollar in its 11th straight winning day, a run not seen in years. With a massive 11% gain since mid-January, sterling’s surge is turning heads. But a critical level at $1.3430 looms, and traders are bracing for a potential showdown. Add in the wild card of U.S. President Donald Trump’s unpredictable social media posts, and the pound’s next move is anyone’s guess. Here’s why this rally is making headlines.

Sterling’s Unstoppable Climb

The pound’s rise has been relentless. The GBP/USD pair, often called “cable” by traders, broke past $1.34 on Tuesday, marking its longest winning streak in over a decade. Posts on X highlight the excitement, with analysts noting the pair’s 11% jump since January, driven by a weaker U.S. dollar and growing optimism in the UK.

What’s fueling this? The U.S. dollar is losing ground as investors question its strength amid political noise. Meanwhile, UK inflation is cooling, raising hopes that the Bank of England might cut interest rates soon, boosting confidence in the pound. “Sterling’s riding a wave of dollar weakness and UK optimism,” says Emma Patel, a currency strategist at London’s Global Markets Group. Data from the Office for National Statistics shows UK inflation dropped to 2.2% in March 2025, supporting the bullish mood.

The $1.3430 Roadblock

Now, all eyes are on $1.3430. This level is a big deal because the pound hit a wall there in September, failing to break through before falling back. Traders call this a “double-top” pattern, a signal that the price might reverse again. “If $1.3430 holds firm, we could see sellers step in,” says Patel. A drop could pull the pound back to $1.32 or lower, but a breakout above $1.3430 might push it toward $1.36, a level not seen since early 2023.

The technical drama is heating up. X posts point to $1.3430 as a key resistance, with some traders betting on a pullback while others see room for more gains. “It’s a tug-of-war between bulls and bears,” says Liam Carter, a 28-year-old day trader in Manchester. “I’m watching that level like a hawk.”

Trump’s Tweets: A Market Mover

The pound’s path isn’t just about charts. U.S. President Donald Trump’s online outbursts are shaking markets. His recent calls for the Federal Reserve to slash interest rates have weakened the dollar, helping sterling’s rise. Posts on X confirm Trump’s posts are now as influential as major economic reports, capable of sparking sharp market swings.

“Trump’s tweets are like lightning bolts,” says Patel. “One post can flip the market in seconds.” With no big economic data due this week, traders are glued to their screens, ready for any sudden comments from the White House. A single post could either boost the pound further or derail its rally if it strengthens the dollar.

Why It Matters

The pound’s surge is more than a trader’s game. A stronger sterling makes imports cheaper, easing costs for UK shoppers, but it can hurt exporters by making British goods pricier abroad. The UK’s $2.8 trillion economy relies heavily on trade, with exports accounting for 30% of GDP in 2024, per the World Bank. A sharp reversal at $1.3430 could also dent investor confidence, while a breakout might signal more gains for UK assets.

Globally, the dollar’s weakness is pushing money into other currencies like the euro and yen, and even gold, which hit $2,700 an ounce this month. The $6 trillion-a-day forex market, where GBP/USD is a major player, is feeling the ripple effects. Businesses hedging currency risks are adjusting strategies, with some locking in gains at $1.34, says Patel.

Risks and Tips

The rally isn’t without pitfalls. A sudden Trump post or a stronger-than-expected U.S. economic report could revive the dollar, pressuring the pound. Plus, if the Bank of England cuts rates too soon, sterling’s appeal could fade. Traders should watch $1.3430 closely, set stop-loss orders to limit losses, and avoid betting big until the level is tested. “Stay nimble,” advises Carter. “This market’s a rollercoaster.”

What’s Next?

The pound’s 11-day streak has put it in the spotlight, but $1.3430 is the real test. With Trump’s posts adding unpredictability, the next few days could be pivotal. “It’s a thrilling time for sterling,” says Patel. “But don’t get too comfortable.” Whether the pound breaks out or pulls back, this rally is a reminder of how fast markets—and tweets—can move.

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📧 Author: a.mane@financetrending.com
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