GBP/USD rebounds strongly after Trump announces Iran-Israel ceasefire

GBP/USD has surged 0.8% to 1.2750 following former President Trump's announcement of an Israel-Iran ceasefire agreement, marking a significant reversal from recent lows. The pound's recovery accelerated as risk appetite returned to markets, with the dollar index falling 1.2% amid reduced safe-haven demand. Sterling found additional support from better-than-expected UK retail sales data and diminishing concerns about global economic disruption. Oil prices plummeted over 6%, easing inflation pressures that had weighed on the Bank of England's policy outlook. Technical analysis shows GBP/USD breaking above the 200-day moving average at 1.2720, with momentum indicators turning bullish. Immediate resistance sits at 1.2780, while support has formed at 1.2700. The ceasefire development removes a major risk factor that had pressured the pound, potentially opening the path for further gains if UK economic data continues to improve.