Pound Sterling Price News and Forecast: GBP/USD is marching towards 1.1400 as pound bulls got [Video]

FXStreet Team FXStreet

GBP/USD advances towards 1.1400 on UK’s reverse tax cut move, US NFP in focus

The GBP/USD pair is gathering momentum in the early Tokyo session to cross Monday’s high at 1.1334. The cable has been strengthened after witnessing a north-side break of the consolidation formed in a 1.1029-1.1232 range. The asset is expected to hit the critical resistance of 1.1400 sooner as the UK government’s U-turn move on tax cuts has infused fresh blood into the pound bulls.

GBP/USD

Overview
Today last price	1.1328
Today Daily Change	0.0161
Today Daily Change %	1.44
Today daily open	1.1167

Trends
Daily SMA20	1.1303
Daily SMA50	1.1702
Daily SMA100	1.1978
Daily SMA200	1.2593

Levels
Previous Daily High	1.1235
Previous Daily Low	1.1025
Previous Weekly High	1.1235
Previous Weekly Low	1.0339
Previous Monthly High	1.1738
Previous Monthly Low	1.0339
Daily Fibonacci 38.2%	1.1155
Daily Fibonacci 61.8%	1.1105
Daily Pivot Point S1	1.105
Daily Pivot Point S2	1.0933
Daily Pivot Point S3	1.084
Daily Pivot Point R1	1.1259
Daily Pivot Point R2	1.1352
Daily Pivot Point R3	1.1469

GBP/USD hits weekly high following tax cut U-turn, WTI Crude hits twelve-day high on Monday [Video]

The British Pound rebounded on Monday, as the government scrapped plans to lower the top rate of tax. Last week, Chancellor Kwasi Kwarteng lowered the top rate of tax from 45% - 40%, which would have been the lowest rate for top earners in the G-7. However, following the reaction on markets, with GBPUSD falling to a historical low, he stated today, “We get it, and we have listened”.

GBP/USD extends the drop to 1.3360

GBP/USD builds on Monday’s decline and briefly clinches five-day lows near 1.3360 on Tuesday. Cable’s extra pullback follows the better tone in the Greenback as uncertainty in the Middle East prompts investors to adopt a cautious stance. Meanwhile, an apathetic UK labour market report also collaborates with the selling pressure on the British Pound.

EUR/USD stays offered just above 1.1400

EUR/USD keeps the downtrend well in place for yet another day, challenging the 1.1400 contention zone on Tuesday. The continuation of the selling impulse in spot comes amid decent gains in the US Dollar, which continues to find support in the persistent effervescence surrounding the US-Iran crisis.

Middle East crisis intensifies, Gold up

Gold now seems to have embarked on a consolidative phase below the key $4,100 mark per troy ounce in the latter part of Tuesday’s session. Meanwhile, uncertainty surrounding the Middle East conflict and rising expectations for a hawkish Fed policy outlook are expected to limit the precious metal’s bullish momentum in the near term.

XRP rebounds on rising on-chain activity

Ripple (XRP) ticks up and trades around $1.13 at the time of writing on Tuesday. This rebound aligns with a broader recovery in the cryptocurrency market, attributed to reports that mediators between the United States (US) and Iran are seeking a 10-day cessation of strikes to find a way back to the signed Memorandum of Understanding (MoU).

The Iranian war has again risen

The Iranian war has again risen to the top of the economics factor list. There is no end in sight. Intelligence experts say the current level of offense/retaliation will not change minds in Tehran, while in Washington, Trump fears all-out war, which would mean boots on the ground.

US Dollar mid-year outlook: Exceptional currency, exceptional risks?

The US Dollar enters the second half of 2026 in a markedly different position from a year ago. The King currency has recovered, reflecting persistent US inflation, changing expectations for Fed policy, geopolitical tensions and renewed demand for defensive assets.