Pound Sterling Price News and Forecast: GBPUSD bounces back to near 1.3400

FXStreet Team FXStreet

GBP/USD Price Forecast: Bounces back to near 1.3400 as US Dollar turns upside down

The British Pound (GBP) recovers its early losses and flattens around 1.3400 against the US Dollar (USD) during the European trading session on Monday. The GBP/USD pair bounces back as the US Dollar surrenders its opening gains and turns negative amid hopes that renewed hostilities between the United States (US) and Iran won’t be prolonged.

In the late European trade, the US Dollar Index (DXY), which gauges the Greenback’s value against six major currencies, trades 0.1% lower at around 100.85. Read more...

British Pound remains subdued as US-Iran tensions lift US Dollar

GBP/USD remains in negative territory after paring daily losses, trading around 1.3390 during the early European hours on Monday. The pair faces challenges as the US Dollar (USD) gains ground on rising safe-haven demand amid intensifying tensions in the Middle East.

US Central Command (CENTCOM) launched additional airstrikes on Sunday evening, following striking more than 300 Iranian targets over a three-night span, including 140 on Saturday. The purpose is to neutralize Iran's capability to target civilian vessels navigating critical waterways. This military escalation has left Washington and Tehran issuing conflicting declarations regarding whether the strategic strait remains open to maritime traffic. Read more...

British Pound remains depressed below 1.3400 as escalating US-Iran tensions underpin USD

The GBP/USD pair finds some support near 1.3370 after a modest gap-down opening on Monday, though it lacks bullish conviction and remains below 1.3400. Nevertheless, spot prices, for now, seem to have stalled the pullback from a nearly four-week high, around the 1.3450 area, touched on Friday amid mixed fundamental cues.

Former Greater Manchester mayor Andy Burnham secured the support of the vast majority of Labour MPs to replace Keir Starmer and become Britain's next prime minister, calming concerns about political instability. This, along with bets for at least one 25-basis-point (bps) interest rate hike from the Bank of England by the end of 2026, lends some support to the British Pound (GBP). However, escalating US-Iran tensions benefit the safe-haven US Dollar (USD) and might keep a lid on any further upside for the GBP/USD pair. Read more...

Author

FXStreet Team

FXStreet

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.

GBP/USD finds support but stays below 1.3400

GBP/USD found support near 1.3370 after starting the week on the back foot but lost its recovery momentum after testing 1.3400 on Monday. The pair's upside remains capped as investors await clarity regarding the conflict in the Middle East. Later in the day, comments from central bank officials will be watched closely by market participants.

EUR/USD holds above 1.1400 as focus remains on Middle East

EUR/USD holds steady above 1.1400 following the bearish action seen during the weekly opening. As the uncertainty surrounding the US-Iran conflict keeps investors on edge, the pair's upside remains limited, while hawkish ECB expectations help the Euro stay resilient against its rivals. In the second half of the day, investors will pay close attention to comments from central bank officials.

Gold struggles to rebound, trades well below $4,100

Gold struggles to recover after opening with a bearish gap and trades well below $4,100, losing more than 1% on a daily basis. The US Dollar (USD) stays resilient against its rivals as markets cling to a cautious stance amid the persistent uncertainty in the Middle East. Tuesday's CPI inflation data from the US and Fed Chair Warsh's testimony could trigger the next big reaction in the precious metal.

Bitcoin retreats as Middle East conflict overshadows ETF inflows

Bitcoin struggles to hold above $64,000 after a modest recovery the previous week. Risk sentiment dampens as tensions in the Middle East escalated after the US launched fresh strikes on Iran on Sunday, weighing on BTC. Meanwhile, improving institutional demand, with spot Bitcoin Exchange Traded Funds ending an eight-week streak of net outflows, has provided only limited support amid rising geopolitical uncertainty.

The US won't default on $39 trillion debt: Why financial repression is coming and Gold is the only hedge

As the US national debt surges past $39 trillion, policymakers face an unsustainable economic trajectory that threatens the global financial system. With a formal default out of the question and fiscal austerity politically unfeasible, the US government is increasingly likely to rely on financial repression, artificially keeping interest rates below inflation to erode the real value of its debt.

Five sessions, one round trip: Why the whipsaw is exactly what Warsh ordered

Markets opened July with a December hike as the base case and spent five trading sessions unlearning and relearning it. A 57K payrolls print bled the tightening bets out of the strip; a re-shut Strait of Hormuz is pushing them back in. Wednesday's minutes from the June FOMC meeting landed mid-round-trip, describing a world that had already stopped existing.