GBP Consolidation Continues Amid US-Iran Tensions and Sliding Yields
The British Pound has been consolidating near its three-week low as tensions between the US and Iran continue to escalate. The recent American strikes on Iranian targets and retaliatory drone and missile attacks by Tehran have added to the geopolitical risk premium, supporting the value of the US Dollar.
Despite this, sliding US bond yields are holding back USD bulls from making aggressive bets, limiting further losses for the GBP/USD pair. Traders are now looking forward to the release of the US ISM Services PMI and the closely watched Nonfarm Payrolls (NFP) report on Friday for some impetus.
The GBP/USD pair is trading around the 200-period Simple Moving Average (SMA) on the 4-hour chart, with initial resistance located at the 38.2% Fibonacci retracement at 1.3521 and more distant barriers at the cycle high anchor near 1.3676.