GBP\/USD rose towards 1.3479 as the US dollar weakened after President Trump said the conflict in Iran could end \u201cvery soon\u201d. He later warned of a stronger response if Iran interferes with tankers at the Strait of Hormuz.<\/p>\n
The pair stayed near a support trendline from January 2025 and then moved above a short-term falling trendline from the January peak. This move eased short-term downside pressure but did not confirm a new bullish trend.<\/p>\n
We recall the situation back in early 2025, when a brief rally was sparked by geopolitical headlines. That temporary relief serves as a reminder that fundamental trends often overpower short-term news. The hope for a new bullish phase then did not materialize, with the pair eventually succumbing to broader dollar strength throughout that year.<\/p>\n
As of today, March 10, 2026, the pound is struggling below 1.2550, with a different set of pressures at play. While recent UK inflation data came in hotter than expected at 3.8%, the latest US Non-Farm Payrolls report showed a robust addition of 275,000 jobs. This puts the Bank of England in a difficult position while giving the Federal Reserve little reason to soften its own stance.<\/p>\n
The options market reflects this uncertainty, with 3-month risk reversals for GBP\/USD showing a persistent skew towards puts at -0.8, indicating traders are paying a premium for downside protection. Implied volatility is also creeping up, now hovering near 9.5, suggesting an expectation of larger price swings. Given this environment, traders should consider buying puts to hedge long positions or initiate speculative downside exposure.<\/p>\n
For those looking for more defined risk, a bear put spread could be an effective strategy. This allows for capitalizing on a potential move lower while capping the maximum loss if the pound unexpectedly rallies. The key is to protect against the choppy, headline-driven price action that we have seen dominate recently.<\/p>\n
We are watching the 1.2600 level as a key resistance zone that has capped rallies multiple times this year. A failure to break above it in the coming weeks would reinforce the bearish case. To the downside, the year-to-date low near 1.2480 remains the critical support level to watch.<\/p>\n
Create your live VT Markets account<\/a>\u00a0and\u00a0start trading<\/a>\u00a0now. <\/b><\/p>\n","protected":false},"excerpt":{"rendered":" GBP\/USD climbed to 1.3479 on weaker dollar, breaking short-term downtrend while support held, bullish unconfirmed.<\/p>\n","protected":false},"author":103,"featured_media":17033,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[59],"tags":[],"class_list":["post-51122","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-live-updates"],"acf":{"acf_article_selection_author":null},"aioseo_notices":[],"aioseo_head":"\n\t\t\n\t\n\t\n\t\n\t\n\n\t\t