The GBP/USD currency pair is trading flat around 1.3565 during the European session on Wednesday, maintaining proximity to its nearly two-month high of 1.3590 reached the previous day [1]. This strength in the British Pound is attributed to improved market sentiment driven by hopes for a permanent ceasefire between the United States and Iran [1]. US President Donald Trump, in an interview with ABC News, expressed confidence that a permanent truce could be achieved within the next two days, stating, 'I think you’re going to be watching an amazing two days ahead. I really do' [1].
Market indicators reflect this upbeat mood, with S&P 500 futures holding onto Tuesday’s gains near 6,970, and the US Dollar Index (DXY) trading close to a six-week low at 98.00 [1]. Technical analysis shows GBP/USD maintaining a bullish bias above the 20-period EMA at 1.3395 and the 50% Fibonacci retracement at 1.3516, with the Relative Strength Index (14) near 62, suggesting buyers remain in control though the pair is approaching overbought territory [1]. Immediate support is noted at 1.3516 and 1.3432, while resistance is seen at 1.3599 and, if breached, could open the way to 1.3718 and the 1.3870 cycle high [1].
Investors are also awaiting comments from Bank of England Governor Andrew Bailey, who is scheduled to speak at an IMF panel later in the day, as well as the release of the UK’s monthly GDP data for February on Thursday [1]. These upcoming events could provide further direction for the GBP/USD pair [1].
CONCLUSION
GBP/USD remains buoyant near a two-month high, supported by positive sentiment around potential US-Iran ceasefire developments and a weaker US Dollar. Market participants are closely watching upcoming remarks from BoE Governor Bailey and UK GDP data for further cues. The overall outlook remains constructive, with technicals favoring buyers in the near term.