GBPUSD: BUY 1.3700, SL 1.3660, TP 1.3800 | 27 June 2025

An event to watch out for today:

15:30 EET. USD - Gross Domestic Product

GBPUSD:

GBP/USD extends its winning streak for the fourth consecutive session, trading around 1.3710 on Thursday during Asian hours. The pair reached 1.3724, a new high since January 2022, which was recorded on Thursday. The risk-sensitive GBP/USD pair is supported by increased risk appetite caused by the fragile truce between Israel and Iran, brokered by the US.

US President Donald Trump noted that the United States (US) and Iran will hold a meeting next week, but questioned the need for a diplomatic solution to Iran's nuclear program, citing the damage caused by US bombing of key facilities, Bloomberg reports.

In addition, traders are assessing the cautious remarks of Federal Reserve (Fed) Chairman Jerome Powell. Powell noted on Wednesday that Trump's tariff policy could cause a one-time rise in prices, but could also lead to more sustained inflation. The Fed should be cautious when considering further rate cuts.

In the UK, Bank of England (BoE) Governor Andrew Bailey said Tuesday in his speech to the House of Lords Economic Affairs Committee that the central bank has begun to see “a weakening of the labor market and likely a decline in wages.” Bailey added that the increase in employers' contributions to social security systems appears to be “affecting the labor market.” He also pointed to a slowdown in wage growth and an increase in economic inactivity.

Trading recommendation: BUY 1.3700, SL 1.3660, TP 1.3800

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