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GBP/USD Surges Above 100-Day Moving Average Amid US-Iran Tensions
The GBP/USD currency pair has experienced a notable increase, breaking above its 100-day moving average for the first time since September 16, 2026. This surge comes in the wake of reports suggesting a potential compromise between the United States and Iran, which has led to a decline in oil prices and US Treasury yields, subsequently exerting pressure on the US dollar. The proposed agreement, reportedly backed by the US, involves a secret visit by the International Atomic Energy Agency (IAEA) to Iranian nuclear sites and the release of $6 billion in interest on frozen Iranian assets, as reported by Al Araby Al Jadeed.
As a result of these developments, December crude oil futures have dropped below $96, down from previous highs above $101. Concurrently, the yield on the US 10-year Treasury note has decreased by 4.6 basis points to 5.089%, moving away from last week's peak of approximately 5.36%. Lower oil prices may alleviate inflation concerns, while the falling yields diminish the dollar's appeal, contributing to the upward momentum of the GBP/USD pair.
The recent high for GBP/USD reached 1.3409, surpassing the 50% retracement level of the decline from the August 2026 high to last week's low. For buyers, maintaining a position above the 100-day moving average at 1.33875 is crucial for sustaining this bullish trend. However, traders may also be cautious, as significant technical levels often attract selling pressure, particularly from those looking to take profits or limit risk. The next major resistance is the 200-day moving average, currently positioned at 1.34314, which will be a key target for buyers moving forward.
Source: KLEA News