Key Moments
- GBP/USD trades just below the mid-1.3500s after rebounding from the 1.3500 area, marking a second consecutive daily gain.
- Dollar weakness tied to US-Iran peace optimism and easing Fed expectations supports the pair, alongside continued BoE tightening bets.
- Technical signals remain constructive, with GBP/USD holding above key Fibonacci levels and momentum indicators favoring buyers.
GBP/USD Supported by Risk Sentiment and Policy Outlook
The GBP/USD pair finds renewed buying interest near the key 1.3500 psychological level and rises to its highest level in more than a week during the Asian session on Monday. The pair is trading just below the mid-1.3500s, up 0.10% on the day, and the price action suggests room for additional upside in the near term.
The US Dollar weakens as traders react to optimism stemming from reports that Iran gave the US a new proposal on reopening the Strait of Hormuz and ending the war. In addition, declining Oil prices ease inflation worries and weigh on expectations for a more aggressive US Federal Reserve, adding to the downward pressure on the Dollar. This Dollar softness, in turn, provides a tailwind for GBP/USD.
At the same time, expectations for further policy tightening by the Bank of England this year continue to underpin the British Pound. The contrast between the evolving Fed outlook and the perceived BoE path reinforces the constructive view on the GBP/USD pair.
Technical Picture Points to Sustained Bullish Bias
The recent corrective decline from the 1.3600 area – a two-month high – halted ahead of a technical confluence that includes the 200-day Simple Moving Average and the 38.2% Fibonacci retracement of the January-March decline. The subsequent rebound, which has now pushed the pair above the 50% retracement level, strengthens the bullish narrative.
Momentum indicators also favor the upside. The Relative Strength Index is positioned near 59, while the Moving Average Convergence Divergence indicator remains in positive territory. Together, these readings indicate that buyers still maintain the upper hand, even as the pace of gains shows some signs of moderating.
Key GBP/USD Levels to Watch
From a technical standpoint, the 61.8% Fibonacci retracement, located near 1.3608, represents the first notable resistance on the topside and protects a move toward recent swing highs. On the downside, the 50.0% retracement at 1.3523 is the initial support to monitor.
Below that, additional downside cushions sit at the 38.2% retracement at 1.3437 and the 23.6% retracement at 1.3332. If selling pressure were to intensify and the broader pullback deepen, the 1.3161 region stands out as a more distant structural support zone.
(The technical analysis of this story was written with the help of an AI tool.)
US Dollar Performance Against Major Currencies
The following table shows the percentage change of the US Dollar (USD) against major peers today. According to the data, the USD has been strongest versus the Swiss Franc.
| USD | EUR | GBP | JPY | CAD | AUD | NZD | CHF | |
|---|---|---|---|---|---|---|---|---|
| USD | -0.08% | -0.10% | -0.11% | -0.05% | -0.33% | -0.19% | -0.05% | |
| EUR | 0.08% | -0.01% | -0.04% | 0.03% | -0.22% | -0.09% | 0.03% | |
| GBP | 0.10% | 0.00% | -0.02% | 0.04% | -0.24% | -0.12% | 0.04% | |
| JPY | 0.11% | 0.04% | 0.02% | 0.08% | -0.22% | -0.10% | 0.10% | |
| CAD | 0.05% | -0.03% | -0.04% | -0.08% | -0.28% | -0.16% | 0.00% | |
| AUD | 0.33% | 0.22% | 0.24% | 0.22% | 0.28% | 0.14% | 0.28% | |
| NZD | 0.19% | 0.09% | 0.12% | 0.10% | 0.16% | -0.14% | 0.15% | |
| CHF | 0.05% | -0.03% | -0.04% | -0.10% | -0.00% | -0.28% | -0.15% |
The heat map represents percentage changes between major currencies. The base currency is taken from the left column, and the quote currency from the top row. For instance, selecting the US Dollar in the left column and moving across to the Japanese Yen cell shows the percentage move for USD (base)/JPY (quote).
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