Pound Sterling Price News and Forecast: GBP dips below 1.3350 with bullish momentum losing steam

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GBP/USD Price Forecast: Pound dips below 1.3350 with bullish momentum losing steam

The British Pound (GBP) ticks lower against the US Dollar (USD) Monday, attempting to close a seven-day rally, as tensions rise again in the Strait of Hormuz, one of the critical points in the peace process between Washington and Tehran. The GBP/USD pair trades near 1.3340 at the time of writing, down from 1.3387 highs last week, although it maintains a near-term bullish trend intact.

The United Command of Iran’s Armed Forces affirmed in local media that any vessel not following the designated route to cross the key waterway will endanger its security and that US interference in the Strait will be decisively responded to. These threats come after Iran’s ambassador in China, Rahmani Fazli, reaffirmed Tehran’s will to collect fees to vessels crossing Hormuz, in a conference in Beijing last weekend, an idea plainly rejected by the US. Read more...

British Pound flat lines around mid-1.3300s vs USD amid Iran tensions

The GBP/USD pair struggles to capitalize on last week's strong move higher and oscillates in a narrow band, around the 1.3350 area during the Asian session on Monday. Moreover, spot prices remain below a technically significant 200-day Simple Moving Average (SMA), warranting caution before positioning for an extension of the recent recovery from the 1.3140 zone, or the year-to-date low touched in June.

The US Dollar (USD) kicks off the new week on a positive note amid renewed tensions over the critical Strait of Hormuz and turns out to be a key factor acting as a headwind for the GBP/USD pair. In fact, Iran’s ambassador to China said on Saturday that Tehran plans to introduce new service fees for ships passing through the strategically important waterway. His remarks come despite the US rejecting the idea of Iran charging vessels for using the strait. This keeps the geopolitical risk premium in play and benefits the Greenback's safe-haven status. Read more...

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