GBP/USD gains some positive traction

GBP/USD Price Forecast: Retakes 1.3200; bearish bias persists amid geopolitical risks

The GBP/USD pair attracts some dip-buyers near the 1.3175 region during the Asian session on Monday, and for now, seems to have snapped a two-day losing streak. Spot prices climb back above the 1.3200 mark in the last hour, though any meaningful appreciation still seems elusive amid persistent geopolitical uncertainties.

Bloomberg, citing Axios, reported that the US, Iran, and regional mediators are discussing terms for a possible 45-day ceasefire that could lead to an end of fighting. This, in turn, keeps a lid on the safe-haven US Dollar (USD) and offers some support to the GBP/USD pair. However, the risk of a further escalation of the conflict remains in play amid US President Donald Trump’s fresh threat to target Iran’s power plants and bridges if the Strait of Hormuz is not reopened by Tuesday. Read more…

Pound Sterling remains in negative territory as Middle East concerns rise

GBP/USD remains subdued for the third consecutive trading day, hovering in the negative territory around 1.3190 during the Asian hours on Monday. The pair struggles as the safe-haven demand for the US Dollar (USD) increases amid heightened uncertainty in the Middle East.

US President Donald Trump set a fresh deadline for Iran to reopen the Strait of Hormuz on Tuesday, while escalating threats targeting its power plants and other civilian infrastructure. Iranian officials responded that Tehran would retaliate in kind against any attacks on its infrastructure, including striking comparable assets owned by or linked to the United States (US). Authorities in Tehran also stated that the strait would remain closed until compensation for war-related damages is secured. Read more…

GBP/USD Weekly Forecast: Holds up, but cracks are starting to show

Another bearish week for the British Pound led to the second consecutive weekly retracement for GBP/USD, which was primarily driven by geopolitical concerns rather than domestic issues, while market participants currently do not expect the Bank of England (BoE) to resume interest rate cuts this year. Instead, markets pencil in around 50 basis points of tightening by year-end.

Sterling has held up reasonably well recently, but the story underneath is starting to look a bit more fragile. At first glance, the move makes sense. Markets have aggressively repriced BoE expectations, shifting from rate cuts to the possibility of further tightening. That swing has provided a solid cushion for the British Pound, helping it outperform most of the G10 space outside of the US Dollar and commodity currencies. Read more…