GBP/USD Price Forecast: Sticks to negative bias below 1.3600 as Iran tensions underpin USD
The GBP/USD finished this past week showing it had the capability of sustaining a higher realm going into this weekend near the 1.36275 mark.
The Pound to Dollar (GBP/USD) exchange rate found support below 1.32 in April and has rallied to 1.36 amid a combination of higher UK yields and a weaker US dollar. Mizuho expects the dollar will regain ground as market fears return while it is sceptical that UK resilience can be sustained.
The US dollar softens as rates continue to dip. That being said, this is a choppy environment overall.
GBPUSD managed to pass above the resistance of 1.3485 to meet the first target at 1.3580. As we see over the chart, the market is facing the first support zone at 1.3485, where if prices remain above it, more advance will be expected with resistances at 1.3580 and 1.3710-35.
The US Dollar eased slightly as the month-old US-Iran ceasefire holds steady and tanker traffic resumes through the Strait of Hormuz, reducing safe-haven demand. DXY tests $97.61 support while EUR/USD defends $1.177 and GBP/USD climbs inside its ascending channel.
EUR/GBP: Local election fallout keeps Pound fragile – ING
GBP/USD Price Forecast: Needs to stabilize above 1.3600 for fresh rally
After the sterling hit a 2-month high of 1.3658 on 1 May 2026 against the US dollar, the GBP/USD has traded sideways, and on Thursday, 7 May 2026, it declined by 0.2% to print an intraday low of 1.1723 on the backdrop of an uptick in US-Iran tension after both sides exchanged fire.
Pound Sterling Price News and Forecast: GBP/USD trades with mild gains near 1.3560
GBP/USD is showing signs of a potential bullish reversal as sterling remains supported above key technical levels despite renewed US-Iran tensions. Traders are closely watching the US non-farm payrolls, unemployment rate, and Michigan consumer sentiment data for fresh directional cues.
GBP/USD slips as Iran hope fades and Dollar firms