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ForexUpdated×10•Originally published 5 May 2026•Updated 7 May 2026•

1 min read

GBP/USD Gains as Risk Appetite Improves Amid US-Iran Ceasefire

Key Facts

1The GBP/USD pair rose as investor risk appetite improved due to a fragile ceasefire between the US and Iran.

2Demand for the US dollar as a safe-haven asset trimmed as the diplomatic truce held.

The GBP/USD pair reached 1.3599, testing its highest levels since mid-February as geopolitical cooling boosted risk appetite. However, analysts at BBH noted that emerging UK fiscal and political concerns are now weighing on the pair, potentially capping its upward momentum. While the US Dollar Index (DXY) remains under pressure, the EUR/USD pair has shown resilience by holding steady at the 1.177 support level. Market focus is now shifting toward the impact of UK local elections and upcoming US Non-Farm Payrolls (NFP) data. Investors are closely monitoring these fiscal headwinds alongside central bank signals to gauge the future policy directions of the Bank of England and the Federal Reserve.

27 days ago

Version History

2 additional sources confirmed this story

Version 1027 days ago

What changed: Updated the story to include BBH's analysis regarding UK fiscal and political concerns weighing on the British Pound.

Version 928 days ago

What changed: Added technical support levels for EUR/USD and confirmed the downward trendline movement of the US Dollar Index (DXY).

Version 828 days ago

What changed: Updated price levels to reflect mid-February highs at 1.3599 and included specific Axios reporting regarding the proximity of a US-Iran agreement.

Version 728 days ago

What changed: Updated the narrative to reflect the shift in market focus from geopolitical factors to upcoming economic data, specifically the US NFP report and the UK Construction PMI.

Version 628 days ago

What changed: Added specific trading levels for GBP/USD at $1.3622 and the daily percentage gain of 0.6%.

Version 528 days ago

What changed: Added stronger-than-expected New Zealand employment data and its downward impact on the GBP/NZD cross.

Version 428 days ago

What changed: The story was updated to reflect the Pound Sterling breaking through resistance levels rather than just approaching them, emphasizing the strong momentum from the weakening USD.

Version 328 days ago

What changed: The story was updated to confirm that the softening of the US Dollar is specifically linked to the progress in US-Iran talks.

Version 229 days ago

What changed: Added specific mention of market caution ahead of tomorrow's UK local elections.

Version 129 days ago

What changed: Added the specific 1.3600 resistance level target and updated context regarding market optimism for a conflict resolution.