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The information provided on EL7.AI is for educational and informational purposes only and does not constitute financial advice.
The GBP/USD pair declined following the release of weak Purchasing Managers' Index (PMI) data in the United Kingdom, which raised concerns regarding economic activity. This deterioration in domestic data coincided with renewed skepticism regarding the US-Iran deal, prompting investors to seek safety in the US Dollar. According to reports, oil prices returned above the $100 level as previous optimism regarding Middle East de-escalation faded.
The pressure on the Pound comes as traders monitor diverging monetary policies, with disappointing macro data reducing rate hike expectations from the Bank of England (BoE). Per market data, other major currencies like the Euro (EUR) faced similar headwinds, while the USD benefited from safe-haven flows. Market data indicates that oil's return above $100 reinforces fears of persistent inflationary pressures that could keep the Federal Reserve (Fed) on a hawkish path for longer.
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Sign InLooking ahead, GBP/USD is trading at sensitive levels as of the close on May 21, 2026, with investors awaiting official commentary from policymakers. From a technical perspective, support levels are visible near current session lows, while the upcoming economic calendar highlights speeches from BoE members Mann and Greene, which may provide further clarity on the British interest rate outlook.