Pound Sterling Price News and Forecast: GBP/USD surges as Iran truce dents US Dollar broadly

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GBP/USD Price Forecast: Strives to hold key 20-day EMA

The Pound Sterling trades in a tight range around 1.3400 against the US Dollar (USD) during the Asian trading session on Thursday. The GBP/USD pair consolidates as investors doubt over the sustainability of the ceasefire between the United States (US) and Iran on early Wednesday in the wake of continued attacks by Israel on Iran-backed Hezbollah in Lebanon.

In response, Iran’s parliament speaker and chief negotiator, Mohammad Bagher Qalibaf, said in a post on X, formerly known as Twitter, that it would be “unreasonable” to continue permanent ceasefire talks with the US as it has violated three clauses of the 10-point proposal so far. Read more...

GBP/USD pulls back from 1.3485 as fragile ceasefire clouds outlook

GBP/USD surged more than 1% on Wednesday after the US and Iran agreed to a Pakistan-brokered two-week ceasefire, pushing Cable to a session high close to 1.3485. The rally faded through the North American session, however, with the pair slipping back to the 1.3400 region as doubts over the deal's durability mounted. Vice President JD Vance described the agreement as a "fragile truce," and Israel launched its largest assault on Lebanon since the war began, declaring the Hezbollah front excluded from the terms.

On the Pound Sterling side, Wednesday's UK data painted a soft picture. Halifax house prices fell 0.5% MoM in March against expectations of a 0.1% gain, while the S&P Global Construction Purchasing Managers Index (PMI) dropped to 45.6, well below the prior 44.5 reading. The Royal Institution of Chartered Surveyors (RICS) housing price balance plunged to negative 23%, its weakest since early 2024. Read more...

GBP/USD surges as Iran truce dents US Dollar broadly

The Pound Sterling (GBP) rallies on Wednesday, advancing for the third straight day this week, up more than 1.10% due to broad US Dollar (USD) weakness, sparked by an improvement in risk appetite following a two-week ceasefire between the US and Iran. At the time of writing, GBP/USD trades at 1.3431, after hitting a five-week high of 1.3484 earlier in the day.

Late on Tuesday, US President Donald Trump agreed to a two-week truce, subject to Iran reopening the Strait of Hormuz, adding that the US had achieved its military objectives. Trump wrote that he received a 10-point proposal from Iran and believes “it is a workable basis on which to negotiate.” Read more...

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