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GBP/USD rose 0.31% to the mid-1.3400s on Thursday as the US-Iran ceasefire pressured the US Dollar. However, the pair has struggled to break above the key 1.3450 resistance level, indicating a potential reversal. The pound's gains were driven by reduced geopolitical tensions, but momentum appears to be waning.
The GBP/USD movement highlights the dollar's fragility amid ongoing geopolitical risks and divergent monetary policies. Traders are closely watching whether the 1.3450 level will hold as a barrier or give way, which could trigger broader forex market volatility. The pair's inability to sustain higher levels may signal a lack of conviction among buyers.
For forex traders, the 1.3450 resistance is critical. A sustained break above this level could open the door to 1.3500, while a rejection might send GBP/USD back toward 1.3350. Market participants should monitor UK inflation data and Fed policy signals for further directional clues.
