GBP/USD retreats by over 0.55% on Tuesday amid political turmoil in the UK, as pressure mounts on Prime Minister Keir Starmer to step aside following cabinet resignations. Technically, the formation of a ‘dark-cloud cover’ suggests further downside if sellers drive the pair below 1.3500.
The GBP/USD pair is down 0.3% to near 1.3570 during the European trading session on Tuesday. The Cable faces selling pressure as the US Dollar (USD) outperforms its peers due to a risk-off market mood.
GBP/USD recovers some ground after opening the week with a bearish gap as geopolitical headlines surrounding the Middle East continue to stir volatility across financial markets.
The GBP/USD pair fills a major part of its weekly bearish gap opening on Monday and is now looking to extend the momentum further beyond the 1.3600 mark.
The GBP/USD pair struggles to capitalize on its modest intraday bounce and remains below the 1.3600 mark through the Asian session on Monday amid the emergence of some US Dollar (USD) buying.
GBP/USD advances around 1.3630 on Friday at the time of writing, up 0.54% on the day, benefiting from broad US Dollar weakness following the release of the US employment report.
The GBP/USD pair trades 0.25% higher to near 1.3590 during the European trading session on Friday. The Cable reflects strength as the Pound Sterling (GBP) outperforms its major currency peers, except antipodeans, amid a revived risk-on rally.
GBP/USD edged slightly lower to around 1.3550 on Thursday, lower around 0.3% after the pair touched a session high near 1.3645 before turning back down.
GBP/USD advances by some 0.28% on Thursday as the US and Iran appear close to signing a peace deal that could reopen the Strait of Hormuz, while keeping issues like the nuclear program unresolved. At the time of writing, the pair trades at 1.3627, rising for a third consecutive day.
Societe Generale’s team highlights that GBP/USD has edged higher, helped by lower Oil prices, risk correlations and Asian FX intervention-driven US Dollar (USD) selling. However, they stress that UK local elections and seasonal patterns pose downside risks.
Brown Brothers Harriman’s (BBH) Elias Haddad notes that GBP/USD has risen above pre-war levels as United Kingdom (UK) local and Scottish elections test Prime Minister Keir Starmer’s leadership.
The GBP/USD pair trades 0.18% higher around 1.3620 during the European trading session on Thursday. The Cable reflects strength as the US Dollar (USD) faces selling pressure amid the optimism that the United States (US) and Iran will reach a peace deal soon.
