GBP/USD under pressure: Pound lags behind peers

RoboForex Analysis Department RoboForex

GBP/USD held steady at 1.3426 on Tuesday, with the pound lagging behind other currencies despite a broader decline in the dollar.

Market sentiment improved following a drop in oil prices, as investors grew hopeful that the US and Iran may reach an agreement to restore shipping through the Strait of Hormuz. Such a development would reduce inflation risks and the likelihood of further rate hikes.

Additional pressure on oil prices came from Donald Trump’s statement on Monday regarding the resumption of negotiations with Tehran, which eased fears of a fresh wave of conflict.

The outcome of last week’s Bank of England meeting reinforced the view that the regulator is in no rush to tighten policy. As a result, markets have scaled back expectations of a rate hike in 2026, which continues to weigh on sterling.

Technical analysis

On the H4 GBP/USD chart, the market is forming a move lower towards 1.3380. A broad consolidation range around the 1.3440 level is taking shape. An upside breakout would open the way for a move towards 1.3500, while a downside breakout would suggest a move towards 1.3300, with scope for the trend to extend to 1.3190. The MACD indicator supports this scenario, with its signal line above zero and pointing downwards.

On the H1 chart, the market has formed a compact consolidation range around the 1.3420 level, currently extending down to 1.3418. A move higher towards 1.3442 is expected, followed by a decline to 1.3380. The Stochastic oscillator confirms this scenario, with its signal line below 50 and pointing downwards towards 20, indicating increasing short-term downside pressure.

Conclusion

GBP/USD is struggling to gain traction, with sterling underperforming compared to other currencies despite a broadly weaker dollar. The pound has failed to benefit from improving risk sentiment, driven by hopes of a US–Iran deal that could ease oil prices and inflation concerns. However, the Bank of England’s cautious stance, reinforced by last week’s policy meeting, continues to weigh on the currency, with markets scaling back expectations for 2026 rate hikes. Technically, the pair appears to be consolidating near 1.3420, with potential for a pullback towards 1.3380–1.3300. The pound’s relative weakness may persist until clearer signals emerge on the BoE’s policy trajectory or geopolitical tensions ease further.

Author

RoboForex Analysis Department

RoboForex

RoboForex Analysis Department provides timely market insights, expert technical analysis, and actionable forecasts across forex, commodities, indices, and equities.

AUD/USD sticks to positive bias above 0.7100; lacks bullish conviction

AUD/USD trades with a positive bias for the second straight day, holding above 0.7100 in the Asian session on Friday as softer US bond yields keep US Dollar bulls on the back foot. Furthermore, hawkish RBA Governor Bullock's comments boost rate hike bets and support the Aussie. However, the Fed's hawkish outlook, along with geopolitical uncertainties, limits USD losses and caps the pair.

USD/JPY approaches 158.00 as Japanese Yen resumes decline

USD/JPY is resuming its upside in the European session on Friday, refreshing two-week highs and nearing 158.00. The Japanese Yen extends losses, despite the Bank of Japan's (BoJ) expected rate hike to 1.25% and hawkish Governor Ueda's comments, as two surprise dissents against the rate hike weigh on it.

Gold keeps the bid tone in place; still below $4,400

Gold adds to the optimism seen in the second half of the week, trading with decent gains just below the $4,400 mark per troy ounce on Friday. The precious metal’s advance finds traction in declining crude oil prices and fresh selling pressure on the US Dollar.

Why altcoin season isn't coming back — and what stole its capital

If, after two years of being frozen in ice, Katara and Sokka woke you up to the crypto market, it would seem like 100 years have passed. With Bitcoin soaring to record highs just over a year ago, everyone expected a routine altcoin season, where investors take profits from the top crypto to chase higher returns in altcoins.

BoJ Recap: Not as hawkish as expected

The BoJ raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks. Governor Kazuo Ueda said the policy phase had changed.

BoJ Recap: Not as hawkish as expected

The Bank of Japan (BoJ) raised its short-term interest-rate target to 1.25% from 1.00% in a 7-2 vote, marking another step in the normalisation of monetary policy and widely matching what everyone has been expecting for weeks.