The GBP/USD pair is moving higher toward the 1.3600 mark, supported by a mild bullish trend. The Relative Strength Index (RSI) on the 4-hour chart remains just above 50, while the pair trades above the 20-, 50-, and 100-period Simple Moving Averages (SMA).
This suggests a short-term bullish bias, though momentum is limited. Immediate support is at the 100-period SMA near 1.3530, followed by levels at 1.3460 and 1.3425 (200-period SMA). Resistance lies at 1.3600, then 1.3630 and 1.3700.
The US Dollar gained safe-haven demand on Friday due to escalating tensions after Israel launched a military operation against Iran. Over the weekend, missile exchanges continued between the two countries. The Israeli military claimed it destroyed one-third of Iran’s surface-to-surface missile launchers and achieved aerial superiority.
Meanwhile, Iran’s parliament is preparing to exit the nuclear Non-Proliferation Treaty (NPT), though it denies plans to develop weapons of mass destruction. These developments have kept markets cautious, helping the US Dollar stay firm against other currencies.
No major economic data is scheduled for Monday. However, upcoming US Retail Sales on Tuesday and UK Consumer Price Index figures on Wednesday could cause brief market reactions ahead of Federal Reserve and Bank of England meetings.
The GBP/USD pair has seen its highest level this year at 1.3632 in mid-June, reflecting a recent strengthening trend amid global uncertainties and central bank watchfulness.
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