GBP/USD Extends Rally Above 1.3400

Traders' Opinions

Summary:

GBP/USD climbed to a three-week high above 1.3400 as the US Dollar weakened following the Federal Reserve's meeting minutes and optimism that US-Iran peace negotiations could resume. Political stability in the UK also continued to underpin Sterling.

BUY GBPUSD

EXP

TRADING

1.33920

Entry Price

1.36500

1.33000

1.34027 +0.00155 +0.12%

0.0

Pips

Flat

1.33000

Exit Price

1.33920

Entry Price

1.36500

The British Pound extended its advance against the US Dollar on Thursday, with GBP/USD climbing above the 1.3400 mark to its highest level in three weeks, as investors continued to sell the Greenback following the release of the Federal Reserve's June meeting minutes while growing optimism over renewed US-Iran negotiations improved market sentiment.

The US Dollar remained under pressure after the Fed minutes revealed differing views among policymakers over the future path of interest rates. While officials maintained their commitment to containing inflation, the lack of a clear consensus on additional policy tightening prompted investors to scale back aggressive Dollar positioning.

Market sentiment also improved after US President Donald Trump suggested that Iran remains eager to reach a new agreement, stating that Tehran "wants to make a deal so badly." Although both countries exchanged military strikes for a second consecutive day, investors remain hopeful that diplomatic negotiations could resume, helping limit broader risk aversion.

The combination of a softer Dollar and improving geopolitical sentiment has provided Sterling with a solid near-term tailwind. Unless upcoming US economic data revives expectations for more aggressive Federal Reserve tightening, GBP/USD may continue to find support above the 1.3400 level.

The Pound has also benefited from improving confidence in the UK's political outlook. With little domestic economic data driving markets this week, investors have instead focused on comments from Andrew Burnham, a leading contender to succeed Prime Minister Keir Starmer, who reaffirmed his commitment to Chancellor Rachel Reeves' fiscal rules. Those remarks have helped calm concerns about Britain's public finances and reinforced confidence in Sterling.

Technical Analysis

GBP/USD is developing a constructive bullish recovery structure on the 4-hour chart, with price trading near 1.3390 after rebounding strongly from the 1.3150–1.3180 support zone. The pair has continued to form higher highs and higher lows since late June, suggesting buyers are gradually regaining control.

The immediate focus is the 1.3480–1.3500 resistance zone, which represents the next major upside barrier. A sustained break above this area would likely confirm stronger bullish momentum and open the door toward 1.3650, matching the projected move on the chart.

On the downside, initial support sits around 1.3330–1.3340, where recent demand has formed. A break below this region would weaken the recovery setup and expose 1.3180.

Momentum remains positive, with price holding above former resistance rather than rejecting sharply lower. This suggests the current pullback is more likely consolidation before continuation than a reversal.

TRADE RECOMMENDATION

BUY GBP/USD

ENTRY PRICE: 1.3390

STOP LOSS: 1.3300

TAKE PROFIT : 1.3650

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