GBP/USD Holds Near 1.3400 as Trump’s Two-Week Ceasefire Boosts Risk Appetite – 1.3500 Next?

Quick overview

GBP/USD is trading in the 1.3380-1.3405 range on April 9 2026, showing some consolidation with a softening in early European trading after yesterday’s strong rally. The pair hit highs near 1.3480-1.3500 on April 8 but then backed off some of those gains

Why is GBP/USD sitting near 1.3400 right now?

A conditional US-Iran ceasefire has eased safe-haven demand for the USD and boosted global risk appetite, but doubts about the truce’s long-term prospects and short-lived timeline are holding the pound back from further gains.

Recent Price Action

On April 8, GBP/USD jumped by over 1% – its biggest one-day gain in three weeks – to a four week high around 1.35 and reclaimed the 20 day EMA, all following the ceasefire announcement which had Iran agreeing to reopen the Strait of Hormuz. That weakened the dollar, saw oil prices plummet, and sent risk assets higher.

Earlier in the week the pound was stuck in a tighter 1.32-1.33 trading range amid ongoing geopolitical jitters. For the year so far GBP is up modestly (about 5% against the USD in some measures) but its still below the earlier 2026 peaks of 1.38 it reached.

Key Drivers Today

• Politics: The truce has reduced fears of prolonged energy disruptions, which has helped risk on currencies like the pound, but the short term nature of the deal and regional activity keep things looking volatile.
• Economic Relief: Lower oil prices ease the pressure of imported inflation on the UK which means the Bank of England may not need to push up interest rates as aggressively (currently pricing in one hike for 2026). This has slightly impacted the attractiveness of sterling to investors but is being offset by the USD’s weakness.
• UK Factors: There isn’t any major data due today but the UK’s growth forecasts are pretty subdued and the earlier energy shocks continue to weigh on sentiment. Historically April has seen GBP/USD enjoy a bit of seasonal strength.

GBP/USD Technical Analysis

GBP/USD is currently trading at 1.3408 after breaking above the downward sloping trend line – the rally took it up towards 1.3480 before the price pulled back to the support zone at 1.3379 (formerly a resistance level now flipped)

Price is above the 50 day SMA at 1.3330 with the 100 day SMA at 1.3315 providing additional support. The chart is showing a pretty clear breakout and retest pattern.

Key Levels:–

• Resistance: 1.3450 → 1.3527 → 1.3574
• Support: 1.3379 → 1.3330 → 1.3280

Trade Idea: Buy above 1.3450, targeting 1.3527 and 1.3570, with a stop below 1.3330.

ABOUT THE AUTHOR See More

Arslan Butt

Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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