The GBP/USD currency pair ended its three-day losing streak on Friday, trading 0.1% higher to near 1.3345 during the Asian session, as market sentiment improved for riskier assets. This uptick was attributed to United States President Donald Trump's announcement of an extended pause on scheduled attacks on Iranian power plants until April 6, which has boosted hopes for de-escalation in Middle East conflicts and contributed to a more favorable risk environment [1].
As of writing, S&P 500 futures were up 0.3% to near 6,500, signaling increased investor risk appetite. Meanwhile, the US Dollar Index (DXY) remained flat near a three-day high of around 100.00, reflecting stability in the Greenback against major currencies [1]. President Trump stated via 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 optimism about ongoing talks with Iran regarding an end to the Middle East war [1].
Investors are now turning their attention to the upcoming United Kingdom Retail Sales data for February, scheduled for release at 07:00 GMT. Month-on-month Retail Sales are estimated to have declined by 0.8% following a 1.8% increase in January, while annualized consumer spending is expected to have grown moderately by 2.1% compared to the previous reading of 4.5% [1].
Technical analysis indicates that GBP/USD is trading higher at around 1.3345, but the near-term bias remains bearish due to recent lower highs. The spot is close to the 20-day Exponential Moving Average (EMA), which has flattened and now caps the upside near 1.34. The 14-day Relative Strength Index (RSI) oscillates in the 40.00-60.00 range, signaling a pause in bearish momentum, though the bearish bias persists. Initial resistance is at the 20-day EMA near 1.3400, followed by the March 23 high at 1.3480. Immediate support is at Monday's low of 1.3257, with further downside targets at 1.3220 and potentially the 1.31 area if bearish momentum resumes [1].
CONCLUSION
GBP/USD has rebounded slightly amid improved market sentiment following President Trump's pause on attacks in Iran, but technical indicators suggest the bearish bias remains intact. Investors are awaiting UK Retail Sales data for further direction. The market reaction is cautiously optimistic, but downside risks persist if support levels are breached.