GBP/USD Price Forecast: Bulls likely to target 1.3600 as USD weakens on US-Iran peace hopes

GBP/USD is advancing toward 1.3600 as the US dollar weakens amid improving US-Iran relations, which are reducing geopolitical risk premiums in global markets. The diminished threat of Middle East escalation is easing safe-haven demand for the dollar, shifting investor risk appetite and pressuring USD across the board. This dynamic particularly benefits higher-yielding or risk-sensitive currencies like the British pound, especially as UK economic data continues to show resilience. The currency pair’s trajectory will hinge on the sustainability of risk-on flows, with traders eyeing upcoming US CPI data as a key gauge of whether dollar weakness accelerates or reverses. Any surprise in inflation could recalibrate Fed rate expectations and trigger a repricing in USD crosses, including GBP/USD.

The US Dollar (USD) is the world's primary reserve currency and the base for most forex majors. Headlines about Federal Reserve policy, US macro data (CPI, NFP, GDP), and Treasury yield shifts typically drive USD pair direction within seconds of release.

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