The currency pair remains range-bound amid UK political uncertainty and upcoming US employment reports shaping Fed policy expectations.
The British Pound steadies around 1.3200 against the US Dollar, reflecting subdued trading as investors assess geopolitical risks and domestic political gridlock. GBP/USD has traded flat in early Monday sessions, trapped in the midpoint of its two-week range amid cautious sentiment.
Recent tensions in the Strait of Hormuz and a fragile ceasefire between US and Iranian negotiators have kept risk appetite in check, despite renewed peace talks. In the UK, the Pound’s upside remains limited ahead of clarity on the next Prime Minister’s agenda. Meanwhile, US markets await key employment data, including Thursday’s Nonfarm Payrolls report, to gauge the Federal Reserve’s next moves.
Technical indicators suggest a potential bottoming for GBP/USD, with the 4-hour Relative Strength Index at 50.7, signaling neutral momentum. The pair has declined nearly 3% over the past two months but shows signs of stabilization in the mid-1.3100s range.