The GBP/USD currency pair saw a decline after briefly rising above 1.3445, with the pair trading around 1.3390 during early European hours on Monday. According to FX Street (UOB), momentum shifted downward following the initial rise, increasing the risk of a test below 1.3360, although a drop to 1.3320 remains less likely for now.
FX Street reported that the British Pound struggled against the US Dollar as the latter gained ground amid escalating US-Iran tensions, which boosted demand for safe-haven assets. This environment pressured GBP/USD to stay in negative territory despite some recovery from earlier losses.
For Japanese investors and traders, the move highlights continued volatility in currency markets influenced by geopolitical risks, underscoring the importance of monitoring US Dollar strength when managing exposure in FX and equity portfolios.