• GBP$ firm into Europe cls, +0.79% at 1.2513; Monday range 1.2550-1.2406

• Sterling bid amid less-austere Trump tariff expectations in WaPo article

• Though Trump has labeled report another example of fake news

• Focus for GBP bulls is inflation, employment and effect on BoE policy

• Pair slid after Trump denial of report but dip was shallow and fleeting

• GBP$ res 1.2550 Monday high, 1.2582 the 50% Fib of 1.2811-1.2353

• Supt 1.2460 pullback low on Trump denial, 1.2406 Monday low

GBP Chart:

(Paul Spirgel is a Reuters market analyst. The views expressed are his own)