GBPUSD: SELL 1.3410, SL 1.3430, TP 1.3320 | 20 يونيو 2025

Event to pay attention to today:

14:00 EET. GBP - Bank of England base rate decision

GBPUSD:

GBP/USD remains down for the third consecutive session, trading around 1.3410 in Asian trading on Thursday. The pair is struggling as the US dollar (USD) strengthens amid rising demand for safe-haven assets triggered by escalating tensions between Israel and Iran. In addition, the Bank of England (BoE) is widely expected to leave interest rates unchanged on Thursday.

In the UK, consumer price index inflation fell to 3.4% year-on-year in May, as expected, from 3.5% in April. However, this figure is still well above the BoE's target of 2%. Nevertheless, markets still expect rates to fall by around 48 basis points by the end of the year.

Bloomberg reported on Thursday that ‘US officials are preparing for a possible strike on Iran in the coming days.’ ‘US plans to attack Iran continue to evolve.’ Another Wall Street Journal report suggests that US President Trump approved plans to attack Iran on Tuesday but wanted to see if Tehran would abandon its nuclear programme.

In addition, the dollar was supported by comments from Federal Reserve Chairman Jerome Powell, who said that inflation remains slightly above target and may rise in the future, citing the impact of US President Donald Trump's tariffs.

The US Federal Reserve (Fed) decided at its June meeting on Wednesday, as expected, to leave the base rate unchanged in the range of 4.25-4.50%. The Federal Open Market Committee (FOMC) still forecasts interest rates to fall by about 50 basis points by the end of 2025.

Trading recommendation: SELL 1.3410, SL 1.3430, TP 1.3320

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