Pound Sterling Price News and Forecast: GBP/USD falls to near 1.3300 amid UK political uncertainty

FXStreet Team FXStreet

GBP/USD Price Forecast: Sees more downside below 1.3300

The GBP/USD pair trades lower near 1.3300 in the early European trade at the start of the week, the lowest level seen in over five weeks. The Cable is down as the British Pound faces broader selling pressure due to the combined effects of United Kingdom (UK) political uncertainty, rising gilt yields, and geopolitical tensions.

UK Prime Minister (PM) Keir Starmer faces a leadership challenge from Greater Manchester Mayor Andy Burnham after the defeat of the Labour Party in regional elections. Concerns over UK PM Starmer’s leadership stemmed after resignations from various ministers. According to analysts at Jefferies, their base case is “one of a managed exit for Starmer and Burnham likely becoming the next PM”. Read more...

British Pound seems vulnerable near 1.3300 vs USD on Iran tensions, UK political turmoil

The GBP/USD pair adds to last week's heavy losses and remains under some selling pressure for the fifth consecutive day on Monday. Spot prices drop to the 1.3300 mark, or the lowest level since April 8, during the Asian session and seem vulnerable amid a broadly firmer US Dollar (USD).

Against the backdrop of rising bets for an interest rate hike by the Federal Reserve (Fed) in 2026, the risk of a further escalation of geopolitical tensions in the Middle East continues to underpin the safe-haven Greenback. In fact, US President Donald Trump warned Iran that the “clock is ticking” and that there “won’t be anything left” if action is not taken soon, adding that “time is of the essence.” Adding to this, the Times of Israel reported on Saturday that Israel and the US are actively advancing military preparations to potentially resume coordinated attacks against Iran. Read more...

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