GBP/USD Holds Above 1.3400 Amid Diverging BoE Signals and Iran Tensions

As of May 22, GBP/USD stabilized above the 1.3400 level amid diverging Bank of England commentary and persistent geopolitical tensions. The pair first hovered near 1.33 on May 18 as Iran risks and UK political turmoil under Prime Minister Starmer mounted, then slipped after weak jobs data lifted unemployment to 5.0% on May 19. Sterling rebounded toward 1.3449 on May 20 as optimism over potential US-Iran talks weakened the dollar, before cooling April CPI at 2.8% tempered rate-hike bets and allowed the pound to hold ground despite renewed geopolitical risks and soft PMI prints.