GBP/USD Outlook: Fluctuates near 1.3360 as US-Iran ceasefire remains uncertain

GBP/USD Holds Steady Amid Geopolitical Uncertainty

The GBP/USD currency pair is experiencing limited movement, hovering near 1.3360 in the early hours of Thursday’s European session. Market participants are in a wait-and-see mode, seeking more information on Iran’s intentions regarding a potential ceasefire, a topic frequently referenced by US President Donald Trump.

On Wednesday evening, President Trump commented at a fundraising event that Iran is eager to reach an agreement, but hesitates to do so openly due to concerns for their safety—fearing repercussions either from within their own country or from the US military, according to the Associated Press.

“They are in negotiations and are desperate for a deal, but they’re reluctant to admit it because they believe it could cost them their lives, either at the hands of their own people or by us,” Trump remarked.

Contrasting these statements, Iran’s Deputy Foreign Minister Abbas Araghchi clarified that Tehran has not entered ceasefire discussions with the US and does not intend to negotiate at this time. Iranian state television further reported that the government will decide when to end the conflict based on its own terms, and until then, military operations in the region will persist, as noted by The Guardian.

Meanwhile, the US Dollar Index (DXY) remains stable around 99.65, reflecting ongoing investor caution.

GBP/USD Technical Overview

Currently, GBP/USD is trading with little change, staying close to 1.3360. The short-term outlook remains negative, as a series of lower highs continues to reinforce the bearish trend. The pair is situated near the 20-day Exponential Moving Average (EMA), which has leveled off following a previous decline and is now acting as resistance near 1.34.

The 14-day Relative Strength Index (RSI) is fluctuating between 40 and 60, suggesting that the recent downward momentum has paused, though the overall bearish sentiment persists.

• Resistance is first seen at the 20-day EMA near 1.3390, with further resistance at the March 23 peak around 1.3480, where previous rallies have stalled. A daily close above this level could reduce selling pressure and pave the way toward the mid-1.35 range.
• On the downside, immediate support is found at Monday’s low of 1.3257. A break below this point would target 1.3220, and a further decline past 1.3220 would indicate a deeper move toward the 1.31 region.

(This technical analysis was generated with the assistance of AI tools.)