• GBP/USD rose on Tuesday as the Israel-Iran ceasefire took effect, lifting market sentiment and encouraging risk-on trades.
• Despite the ceasefire announced by President Trump, tensions remained high after Israel’s Defence Minister said fresh strikes were launched in response to Iran breaching the truce—a claim Tehran firmly rejected.
• During periods of global uncertainty, investors typically move away from the risk-sensitive British pound in favor of traditional safe havens like the Swiss franc, Japanese yen
• Looking ahead market participants are waiting Fed Chair Jerome Powell's semi-annual testimony before Congress for signals on potential rate cuts, following recent dovish comments from other Fed officials.
• Technical indicators support a bullish outlook, with RSI holding at 60 and the pair trading above the 5-, 9-, and 11-day moving averages.
• Immediate resistance is located at 1.3627(23.6%fib), any close above will push the pair towards 1.3684(Higher BB)
• Strong support is seen at 1.3513(June 24th low) and break below could take the pair towards 1.3382(38.2%fib).
Recommendation: Good to buy around 1.3580 with stop loss of 1.3480 and target price of 1.3660
