British Pound holds firm as Trump ceasefire shock tests USD
- Trump says ceasefire is over, reviving Middle East risk.
- Fed minutes show a tightening bias, but officials await data.
- Burnham's support and IMF upgrade cushion Sterling sentiment.
The Pound Sterling (GBP) holds firm on Friday during the North American session as risk appetite deteriorated after US President Donald Trump posted on social media that the ceasefire with Iran is over, even though negotiations continue. At the time of writing, the GBP/USD pair trades at 1.3406, unchanged, after reaching an almost one-month high of 1.3451 earlier in the day.
GBP/USD steadies as geopolitics, Fed minutes and UK politics collide
This week, GBP/USD is poised to finish with gains of over 0.58% following the resumption of hostilities in the Middle East. The end of the ceasefire between the US and Iran could bolster the Greenback even though both countries are set to continue negotiations next week in Switzerland.
In the meantime, the Fed’s meeting minutes showed that officials favored further tightening but supported holding rates, as they assess incoming data. Data-wise, Initial Jobless Claims were better than expected, though they did little to move the needle, as market participants were digesting geopolitical news.
Aside from this, the US economic docket was light, but it will get traction next week. Investors are eyeing the release of inflation data on the consumer and producer sides, alongside speeches by Federal Reserve officials, the University of Michigan (UoM) Consumer Sentiment and the appearance of the new Fed Chair Kevin Warsh at the US Congress.
In the UK, the schedule was also absent, but traders are supporting Sterling amid comments from the former Greater Manchester mayor Andy Burnham, who is set to become the new Prime Minister.
Regarding political news, Burnham has already taken the first step to be the new PM. He secured the support of the majority of Labour MPs to succeed the current PM, Keir Starmer.
Next week, the UK economic calendar will feature speeches by the Bank of England’s Chief Economist, Huw Pill, and Governor Andrew Bailey. Alongside this, traders will eye the release of BRC Retail Sales, followed by the release of Gross Domestic Product (GDP) in May.
Earlier, the International Monetary Fund (IMF) upgraded forecasts for the UK economy, predicting a 1% growth in 2026, affirming that it would be the third fastest-growing economy in the G7, just behind Canada and the US.
GBP/USD Price Forecast: Technical outlook
In the daily chart, GBP/USD trades at 1.3421. The pair holds above the latest reading of the 50/100/200-day simple moving averages (SMA) cluster at 1.3394, suggesting a modestly constructive near-term tone while still operating below the broken resistance and support trend-line levels around 1.3500. The Relative Strength Index (14) at 59.2 leans towards bullish momentum without yet signaling overbought conditions, hinting that buyers retain the upper hand as long as price stays supported over the nearby SMA floor.
On the downside, immediate support is seen at the SMA cluster around 1.3394, just below the current spot, with the latest close at 1.3421 acting as a nearby pivot level for short-term dip-buying interest. On the topside, initial resistance emerges at the former support trend-line break near 1.3501, followed closely by the downward-sloping resistance trend-line break at 1.3504, where a sustained clearance would open the path for a more decisive bullish extension in the days ahead.
(The technical analysis of this story was written with the help of an AI tool. Know more.)
Pound Sterling Price This week
The table below shows the percentage change of British Pound (GBP) against listed major currencies this week. British Pound was the strongest against the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | 0.00% | -0.51% | 0.05% | -0.49% | -0.39% | -1.11% | 0.40% | |
| EUR | -0.01% | -0.54% | 0.02% | -0.52% | -0.36% | -1.15% | 0.34% | |
| GBP | 0.51% | 0.54% | 0.45% | 0.02% | 0.19% | -0.60% | 0.88% | |
| JPY | -0.05% | -0.02% | -0.45% | -0.55% | -0.31% | -1.13% | 0.33% | |
| CAD | 0.49% | 0.52% | -0.02% | 0.55% | 0.22% | -0.57% | 0.86% | |
| AUD | 0.39% | 0.36% | -0.19% | 0.31% | -0.22% | -0.80% | 0.67% | |
| NZD | 1.11% | 1.15% | 0.60% | 1.13% | 0.57% | 0.80% | 1.50% | |
| CHF | -0.40% | -0.34% | -0.88% | -0.33% | -0.86% | -0.67% | -1.50% |
The heat map shows percentage changes of major currencies against each other. The base currency is picked from the left column, while the quote currency is picked from the top row. For example, if you pick the British Pound from the left column and move along the horizontal line to the US Dollar, the percentage change displayed in the box will represent GBP (base)/USD (quote).
Author
Christian Borjon Valencia
FXStreet
Markets analyst, news editor, and trading instructor with over 14 years of experience across FX, commodities, US equity indices, and global macro markets.
