Pound Sterling Price News and Forecast: GBP/USD attracts some dip-buying at the start of a new week

GBP/USD Price Forecast: Sticks to negative bias below 1.3600 as Iran tensions underpin USD

The GBP/USD pair struggles to capitalize on its modest intraday bounce and remains below the 1.3600 mark through the Asian session on Monday amid the emergence of some US Dollar (USD) buying. The recent optimism over a potential US-Iran peace deal faded rather quickly in the wake of renewed hostilities in the Strait of Hormuz and major disagreements over Tehran's nuclear program. This, along with reviving hawkish US Federal Reserve (Fed) expectations, revives the USD demand and keeps a lid on the GBP/USD pair rebound from the 1.3550-1.3545 region.

However, the Bank of England's (BoE) signal that rate hikes could be appropriate if inflation remains persistent, along with easing concerns over UK Prime Minister Keir Starmer’s position, act as a tailwind for the British Pound (GBP). This continues to act as a tailwind for the GBP/USD pair and warrants some caution before positioning for any meaningful downfall. From a technical perspective, spot prices hold above the 100-period Exponential Moving Average (EMA), suggesting a mildly constructive near-term bias. That said, momentum indicators are mixed, with the Relative Strength Index (RSI) hovering near the neutral 50 line and the Moving Average Convergence Divergence (MACD) slipping marginally back below zero. Read more...

British Pound pares intraday losses; bulls seem hesitant near 1.3600 on firmer USD

The GBP/USD pair rebounds nearly 50 pips following a bearish gap opening at the start of a new week and climbs back to the 1.3600 mark during the Asian session. However, a modest US Dollar (USD) strength might cap any further gains for spot prices. US President Donald Trump and Iran both rejected each other’s peace proposals for ending the war and the gradual reopening of the Strait of Hormuz amid major disagreements over Iran's nuclear program. This comes on top of renewed hostilities and keeps geopolitical risks in play, which, in turn, assists the safe-haven Greenback to attracts some buyers and should keep a lid on the GBP/USD pair.

Meanwhile, the latest developments trigger a fresh leg up in Crude Oil prices and revive inflationary concerns. Adding to this, Friday's upbeat US Nonfarm Payrolls (NFP) report backs the case for the US Federal Reserve (Fed) to stick to its hawkish stance and remains supportive of elevated US Treasury bond yields. This lends additional support to the USD, and warrants caution for the GBP/USD bulls. Read more...