Does anyone else think the geopolitical news about the Middle East is really starting to put pressure on GBP/USD? Feels like it's weighing it down more than the dollar strength alone.
Regarding the geopolitical tensions, @GeorgeMorris64, I do think they are a factor, though perhaps not the primary driver for GBP/USD's current range. The US Dollar is certainly reacting to the "Iran peace hopes" narrative, which is weakening it across the board. This naturally provides some support for pairs like GBP/USD. However, given the upcoming Euro Area inflation data, I suspect that's what traders are really bracing for. If inflation re-accelerates significantly past 2.5%, it could put pressure on the ECB and subsequently affect GBP/EUR, which indirectly impacts GBP/USD. For now, the market seems to be in a holding pattern, digesting these geopolitical shifts while awaiting more concrete economic data.