GBPUSD: BUY 1.3620, SL 1.3600, TP 1.3710 | 26 June 2025

Events to pay attention to today:

17:00 EET.USD - Fed Chair Jerome Powell will deliver a speech

17:30 EET.USD - Crude oil inventory data from the Department of Energy

GBPUSD:

GBP/USD extends its winning streak for the third session in a row, trading around 1.3620 on Wednesday during Asian hours. The pair is hovering around 1.3648, the highest level since February 2022, which was recorded on Tuesday. The risk-sensitive GBP/USD pair is supported by increased risk appetite amid easing tensions in the Middle East.

US President Donald Trump announced that a ceasefire between Iran and Israel came into effect on Tuesday, raising hopes for an end to the 12-day conflict. However, caution remains due to uncertainty about the durability of the ceasefire. Traders are likely to focus their attention on the possible resumption of negotiations on Iran's nuclear programme and the fate of its enriched uranium.

During his testimony before the Congressional Budget Committee on Tuesday, Fed Chairman Powell spoke in favour of postponing rate cuts, probably until the fourth quarter. Powell added, ‘When the time is right, expect rates to continue to decline.’ He also said that data indicates that at least some of the tariffs will hit consumers, and tariff inflation will begin to rise in June.

Kansas City Fed President Jeff Schmid said on Wednesday morning that the central bank should wait to see how uncertainty surrounding tariffs and other policy measures will affect the economy before adjusting interest rates. Schmid added that the stability of the economy gives us time to observe price and economic developments.

Trading recommendation: BUY 1.3620, SL 1.3600, TP 1.3710

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