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GBP/USD Price Forecast: Holds onto gains near 1.3500 amid risk-on mood

May 25, 2026

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GBP/USD remains firm near 1.3500 as the appeal of risk-sensitive assets remain upbeat.
US President Trump said that agreement with Iran has “largely negotiates”.
Iran said that it is not close to reaching a deal with the US.

The British Pound (GBP) clings to opening gains around 1.3500 against the US Dollar (USD) during the late European trading session on Monday. The GBP/USD pair trades higher as the market sentiment remains risk-on due to expectations that the United States (US) and Iran will reach a deal soon.

At the press time, S&P 500 futures are up almost 1% around 7,550, reflecting strong demand for riskier assets. The US Dollar Index (DXY), which tracks the Greenback’s value against six major currencies, trades 0.33% lower to near 99.00.

The market sentiment remains favorable for riskier assets as US President Donald Trump stated over the weekend that the agreement with Iran is “largely negotiated”. However, comments from Iran appear to be in contrast with Trump’s statement.

“We’ve reached conclusions on many topics discussed, but that does not mean we’re close to signing an agreement,” a spokesperson from Iranian Foreign Ministry said during the European trade.

GBP/USD technical analysis

GBP/USD trades firmly at around 1.3500 as of writing. The near-term tone of the pair turns modestly bullish bias as it has returned above the 20-day Exponential Moving Average (EMA), which is at 1.3474. The reclaimed short-term EMA suggests underlying demand is attempting to stabilize the recent advance, while the Relative Strength Index (RSI) around 52 aligns with a neutral-to-firm tone rather than overextended conditions.

On the topside, immediate resistance is located at the former downward resistance trend-line break level around 1.3612, and a sustained push through this barrier would open the way for further recovery towards 1.3700. Looking down, the pair could slide to 1.3400 if it fails to hold the 20-day EMA. The pair could witness more downside towards the May 18 low of 1.3302 once it breaks below 1.3400.