The Pound to US Dollar exchange rate made significant gains on Tuesday, primarily driven by news suggesting that US President Donald Trump may implement a two-step approach regarding tariffs. At the current juncture, GBP/USD trades around $1.2948.

This development has fueled market optimism and speculative activity, propelling the currency pair upwards. Traders should closely monitor how news of tariffs influences the broader economic landscape, particularly as it relates to transatlantic trade relations.

As conversations around tariffs evolve, participants in the forex market should remain vigilant of any economic data releases from both the UK and US that could sway the GBP/USD dynamics. A strong performance sustained above current levels may signal a more prolonged bullish trend.