GBP Breakout Looms as USD Weakness Continues
The British Pound (GBP) continues to trade near its highest level in over two months against the US Dollar (USD), with bulls awaiting a breakout above 1.3660. The GBP/USD pair has been on an uptrend for nearly a month, and the recent weakness of the USD is seen as a key factor supporting this trend.
The USD's struggles to recover from its lowest level in over three months have given the GBP a boost. Traders have scaled back their bets for an immediate interest rate hike by the US Federal Reserve (Fed) amid signs of cooling price pressures, which has kept USD bulls on the defensive.
However, geopolitical tensions between the US and Iran could limit losses for the safe-haven buck. US Treasury Secretary Scott Bessent is set to announce new sanctions on Iran, which may add a geopolitical risk premium to the USD.