Pound Sterling edges lower as Iran war concerns revive USD demand; downside seems limited
The GBP/USD pair struggles to capitalize on the previous day’s move higher and edges lower during the Asian session on Tuesday. Spot prices, however, manage to hold above the 1.3400 mark as investors await further developments surrounding the US-Israel-Iran war before placing fresh directional bets.
The US Dollar (USD) attracts fresh buyers following the previous day’s pullback from over a three-month high and turns out to be a key factor acting as a headwind for the GBP/USD pair. Iran’s Islamic Revolutionary Guard Corps (IRGC) dismissed US President Donald Trump’s remarks that the war is close to ending and said that Tehran, not Washington, will determine when the war ends. This keeps geopolitical risks in play and revives demand for traditional safe-haven assets, including the USD. Read more…
GBP/USD climbs back above 1.3400 amid a shaky consolidation trap
GBP/USD rose about 0.3% on Monday, falling just short of reclaiming 1.3450 after rebounding from a dip to around 1.3280 in the early session. Monday marks the sixth consecutive session in which the pair has treaded across the 200-day Exponential Moving Average (EMA), with price oscillating in the chart neighborhood near 1.3400 as consolidation sets in. Despite a looming consolidation phase, a bullish close above 1.3400 has tilted the near-term picture in favour of buyers heading into Tuesday.
Rate cut expectations for the Bank of England (BoE) have collapsed since the Strait of Hormuz crisis began, with markets now assigning less than a 20% probability of a cut this month, down from over 80% before the conflict. UK rate futures price less than a single 25 basis point reduction for the rest of 2026, as surging energy costs threaten to keep inflation elevated. Read more…
GBP/USD slips as Oil surge, Iran conflict boosts US Dollar
The British Pound (GBP) losses some ground versus the US Dollar (USD) on Monday as risk aversion keeps the Greenback bid, sponsored by the escalation of the Iran conflict. This triggered a sudden jump in oil prices, which are up 11%, retreating after gaining nearly 30% during Monday’s Asian session. At the time of writing, GBP/USD trades at 1.3366, down 0.28%.
Most G8 FX currencies depreciated against the American currency, which, according to the US Dollar Index (DXY), posts gains of over 0.34%. The DXY, which measures the buck’s performance against six currencies, is at 99.20 after reaching a nearly three-month high of 99.69, a level last seen late in November of 2025. Read More…
Source: https://www.fxstreet.com/news/pound-sterling-price-news-and-forecast-gbp-usd-attracts-some-sellers-amid-geopolitical-uncertainties-202603100531
