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GBP/USD Faces Selling Pressure Amid Geopolitical Tensions and...

GBP/USD Faces Selling Pressure Amid Geopolitical Tensions and Rising US Yields

The GBP/USD currency pair is grappling with selling pressure, remaining below the mid-1.2120 range during the early European session on Thursday. Several factors are contributing to this downward pressure, including a surge in US Treasury bond yields and escalating geopolitical tensions between Israel and Hamas, which are boosting demand for the US Dollar (USD). As a result, the GBP/USD pair currently trades near 1.2123, marking a 0.14% loss for the day.

Market Dynamics:

The rising US Treasury bond yields have led to increased demand for the US Dollar, impacting the GBP/USD exchange rate. Higher yields make US assets more attractive to investors, resulting in a stronger USD.

Geopolitical tensions between Israel and Hamas have also played a role in the USD's strength, as uncertainty in the region often drives investors toward safe-haven currencies.

Technical Analysis:

From a technical perspective, the outlook for the GBP/USD pair remains bearish, with indications of a continuation of the bearish impulse that began after the take profit level was reached yesterday.

Take Profit Achieved Yesterday: