GBP/USD Price Forecast: Snaps three-day losing streak as market sentiment improves
- GBP/USD rises to near 1.3345 as market sentiment turns favorable for riskier assets.
- US President Trump extended the postponement of scheduled military action on Iran’s power plants.
- Investors await UK Retail Sales data for February.
The GBP/USD pair snaps its three-day losing streak on Friday, trading 0.1% higher to near 1.3345 during the Asian trading session. The Cable rises as the market sentiment turns favorable for riskier assets, following United States (US) President Donald Trump’s extended pause on scheduled attacks on Iranian power plants until April 6, which boosts hopes of de-escalation in conflicts in the Middle East.
As of writing, S&P 500 futures trade 0.3% higher to near 6,500, indicating an improvement in investors’ risk appetite. Meanwhile, the US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades flat near a three-day high of around 100.00.
Late Thursday, US President Trump said through a post on Truth.Social, “I am pausing the period of Energy Plant destruction by 10 Days to Monday, April 6, 2026, at 8 P.M., Eastern Time,” and expressed confidence that talks with Iran regarding an end to the Middle East war are going well.
In Friday’s session, investors will focus on the United Kingdom (UK) Retail Sales data for February, which will be published at 07:00 GMT. Month-on-month Retail Sales, a key measure of consumer spending, is estimated to have declined 0.8% after a 1.8% growth seen in January. On an annualized basis, the consumer spending measure is expected to have risen at a moderate pace of 2.1% against the previous reading of 4.5%.
GBP/USD technical analysis
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GBP/USD trades higher at around1.3345 as of writing. The near-term bias is bearish as recent lower highs reinforce the downside tone. The spot trades close to the 20-day Exponential Moving Average (EMA), which has flattened after a prior decline and now caps the upside around 1.34.
The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 zone, signaling a pause in the bearish momentum, while the bearish bias remains intact.
Initial resistance emerges at the 20-day EMA near 1.3400, followed by the March 23 high around 1.3480, where recent supply halted rebounds. A daily close above that level would ease the bearish pressure and open the way toward the mid-1.35 region. On the downside, immediate support aligns with Monday’s low at 1.3257, with a break exposing the next bearish target at 1.3220. A drop through 1.3220 would confirm a stronger downward extension toward the 1.31 area.
