GBP/USD Paralyzed Near Three-Week Low Amid Geopolitical Tensions and Fed Bets

The British Pound has been consolidating near its three-week low as investors continue to bet on a potential rate cut by the Federal Reserve and tensions between the US and Iran remain high.

Fresh American strikes on Iranian targets have led to retaliatory drone and missile attacks from Tehran across the Gulf region, increasing geopolitical risks and supporting the safe-haven Greenback.

However, sliding US bond yields are holding back USD bulls from placing aggressive bets, limiting further losses for the GBP/USD pair. Traders are now looking forward to the release of the US ISM Services PMI for some impetus, but the focus remains on the closely watched US monthly employment details, popularly known as the Nonfarm Payrolls (NFP) report on Friday.