Pound Sterling Price News and Forecast: GBP/USD reverses a part of the overnight losses

FXStreet Team FXStreet

British Pound edges higher vs softer USD; lacks bullish conviction as Iran risks persist

The GBP/USD pair attracts some dip-buyers following the previous day's slide back closer to the weekly low and trades above the 1.3400 mark during the Asian session on Thursday. The uptick is sponsored by a softer US Dollar (USD), though the upside potential seems limited amid persistent geopolitical uncertainties.

In a joint statement with the US on Wednesday, Israel and Lebanon announced they agreed to the implementation of a ceasefire after peace talks in Washington. The latest development eases concerns about a broader regional conflict and keeps a lid on the safe-haven USD's move higher witnessed since the beginning of this week. This, in turn, is seen as a key factor offering some support to the GBP/USD pair. However, renewed hostilities in the Gulf keep geopolitical risks in play and should limit deeper USD losses, warranting caution before placing aggressive bullish bets on the currency pair. Read more...

British Pound buckles as Hormuz attacks spark US Dollar rush

The Pound Sterling (GBP) drops by 0.28% during the North American session on Wednesday as the US and Iran exchange attacks, while data in the US showed that the labor market remains solid and that business activity expanded but is slowing. At the time of writing, the GBP/USD pair trades at 1.3426 after reaching a daily high of 1.3471.

Overnight, the US military carried out attacks near the Strait of Hormuz, while Tehran attacked US Gulf allies, Kuwait, the UAE and Saudi Arabia. Iran reported that the US attacked Qeshm Island and, as retaliation, the Islamic Revolutionary Guard Corps (IRGC) launched strikes on US bases, warning that additional attacks would be met with a seismic, crushing and decisive response. Read more...

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Composed of a group of economic journalists and FX experts, the FXStreet content team produces and oversees all content published on FXStreet. It provides a purely journalistic approach to the Forex market.

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