GBPUSD:
The GBP/USD pair is rising after more than 1% losses the previous day, trading near 1.3440 during Asian hours on Wednesday.
Markets expect the US Federal Reserve (Fed) to leave the interest rate unchanged at its June meeting later in the North American session. According to Reuters, the probability of a Fed rate cut in September and a subsequent cut in October is nearly 80%.
Traders will closely monitor the Federal Open Market Committee (FOMC) statement on monetary policy, awaiting further guidance amid ongoing tariff uncertainty and rising geopolitical tensions.
However, the GBP/USD pair faced challenges as the US Dollar strengthened amid increased demand for safe-haven housing, driven by rising geopolitical tensions in the Middle East. Israel and Iran continue the cycle of retaliation.
On Tuesday, US President Donald Trump posted a message on his social media account calling for Iran’s “unconditional surrender”. Investors fear that the United States will become involved in the Israeli-Iranian conflict.
Trading recommendation: SELL 1.3405, SL 1.3505, TP 1.3205
Origin: FreshForex
