**BREAKING: British Pound Stalls Below 1.3200 as Strait of Hormuz Tensions Boost Dollar**
The British Pound is holding modest gains against the US Dollar for a second consecutive day but facing resistance at the 1.3200 level during Friday’s Asian trading session. The GBP/USD pair failed to breach Thursday’s swing high as escalating geopolitical tensions in the Strait of Hormuz triggered renewed safe-haven flows into the greenback.
A reported ship attack in the strategically vital Hormuz shipping lane is dampening risk appetite across currency markets, with traders rotating out of sterling and into traditional defensive assets. The Pound’s bullish momentum appears to be losing steam despite yesterday’s positive performance, as dollar strength stemming from the Middle East crisis outweighs recent optimism around UK fundamentals.
Currency traders and forex brokers should monitor developments in the Persian Gulf closely, as further escalation could accelerate safe-haven demand and pressure risk-sensitive currencies including sterling.
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FXnCO Insight
** Consider tightening stops on long GBP/USD positions above 1.3150 as geopolitical risk premium continues favoring dollar strength over sterling rallies.
Source: FXStreet