GBP/USD Forms Bull Flag as USD Gains on Middle East Tensions

GBP/USD is trading under pressure as the US dollar strengthens on heightened geopolitical risks in the Middle East, including strained ceasefire negotiations and uncertainty surrounding President Trump's delay of Iran-related military action. The pair is forming a technical bull flag pattern on the daily chart, suggesting a potential bullish continuation if the pattern confirms with an upward breakout. However, near-term downside pressure persists as cautious market sentiment drives flows into the safe-haven dollar. Traders are closely watching upcoming UK retail sales data, which could provide a catalyst for the pair's next directional move. Stronger-than-expected retail figures would bolster the pound and support the bull flag thesis, while a miss could trigger a breakdown below current support levels. Key technical levels include flag support near recent swing lows and resistance at the upper boundary of the consolidation pattern. Traders should monitor both the geopolitical headlines and the retail sales release for confirmation of the next significant move.