GBP/USD Eyes Key Levels as Gold Pulls Back on Risk-On Shift

GBP/USD and gold are presenting two key trades to watch as shifting geopolitical sentiment reshapes market positioning. The British pound is finding support against the US dollar as the greenback loses some of its war premium, with traders reassessing the risk landscape following potential diplomatic breakthroughs. Brent oil's decline is easing UK inflationary pressures, potentially giving the Bank of England more flexibility on monetary policy, which is providing a modest tailwind for sterling. Meanwhile, gold (XAU/USD) is pulling back from recent highs as improved risk appetite reduces safe-haven demand, though the precious metal retains underlying support from central bank buying and lingering geopolitical uncertainty. The US Dollar Index futures are showing weakness, which is broadly supportive for GBP/USD. Key technical levels for GBP/USD include resistance near recent highs, with support likely forming at the 20-day moving average. Traders should watch upcoming UK economic data and US employment figures for directional catalysts in both instruments.