Renewed geopolitical risks and hawkish Federal Reserve expectations lift the USD, capping the pair’s rebound near 1.3600.
The GBP/USD pair remains under pressure below 1.3600 in early Asian trading, weighed by a resurgence in USD demand. Escalating tensions in the Strait of Hormuz and stalled US-Iran negotiations have dampened risk sentiment, bolstering the greenback’s safe-haven appeal.
Recent hawkish signals from the Federal Reserve, alongside persistent inflation concerns, have further supported the USD. Meanwhile, the Bank of England’s cautious stance on rate hikes and stabilizing UK political sentiment provide limited support for the GBP. The pair last traded near 1.3550-1.3545, with technical indicators signaling mixed momentum.
Spot prices hold above the 100-period EMA, suggesting a modest near-term bias, but the RSI near 50 and MACD below zero indicate weak upside traction. Traders await a decisive break above 1.3635 for confirmation of further gains.