Pound Sterling Price News and Forecast: GBP/USD rallies further to near 1.3515 amid risk-on market mood

FXStreet Team FXStreet

GBP/USD Price Forecast: Refreshes six-week high above 1.3500

The Pound Sterling (GBP) extends its rally to near 1.3515 against the US Dollar (USD) during the Asian trading session on Tuesday. The GBP/USD pair strengthens as the market sentiment remains favorable for riskier assets amid positive commentary from United States (US) President Donald Trump and Vice President JD Vance over negotiations with Iran regarding a permanent ceasefire.

During the press time, S&P 500 futures trade flat after surging over 1% on Monday, reflecting that the broader market mood is risk-on. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, posts a fresh six-week low near 98.30. Read more...

GBP/USD rallies to seven-week highs above 1.3500 as US Dollar fades

GBP/USD opened the new week on the soft side, dipping to a session low near 1.3380, but staged a strong recovery through Monday's session to close around 1.3510, up 0.35% on the day. The move pushed the pair to its highest level since late February, decisively reclaiming the 1.3500 handle for the first time since the sell-off that followed the outbreak of the Iran conflict. The pair has now rallied over 350 pips from the early April low close to 1.3160, erasing roughly half of the decline from the year-to-date high near 1.3870.

President Trump's announcement of a US blockade of the Strait of Hormuz, following the collapse of weekend peace negotiations in Pakistan, initially sparked a risk-off start to the trading week and weighed on Pound Sterling. However, sentiment tilted back through Monday's session as markets grew increasingly hopeful that a resolution will eventually emerge, despite a constant moving of the goalposts on a peace deal. The resulting shift in risk appetite softened the US Dollar broadly and allowed GBP/USD to recover. Read more...

GBP/USD holds near 1.3460 as Iran talks disappoint traders

The Pound Sterling (GBP) remains firm on Monday as talks between Iran and the US disappointed investors, triggering a reaction from the White House, while recent news suggests that Tehran could be considering abandoning uranium enrichment, a key condition set by the US to end the war. At the time of writing, the GBP/USD pair trades at 1.3457.

The market sentiment improved slightly but remains mixed, as Iran is reportedly considering halting its nuclear program. Nevertheless, the US established a blockade in the Strait of Hormuz, which began at 10:00 AM EDT on Monday, aimed at blocking Iranian-flagged vessels and those from other countries leaving Iranian ports. Read more...

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