GBP/USD bear trend stalling for the third consecutive day, unable to break 1.3500

• Earlier in the day, US President Trump decided to withdraw the US from the Iran nuclear deal.
• The GBP/USD pair bears are failing to close the market below the 1.3500 handle for the second time. 
• Investors’ focus is shifting to Bank of England’s Super Thursday.  

The GBP/USD is trading at around 1.3547 down 0.07% on Tuesday as the US President announced that he withdrew the US from the Joint Comprehensive Plan of Action (Iran nuclear deal). 

The GBP/USD was mainly unaffected by the news and traded in a tight 20-pip range at the time of the release. The cable keeps oscillating between the 1.3530 and 1.3550 level at the time of writing. 

Trump made a decision that can complicate the geopolitical picture as Russia and China are also part of the Joint Comprehensive Plan of Action. He is also going against allies such as France, UK, Germany, and the European Union. It remains to be seen how the markets are going to interpret the news.

Meanwhile, the US Dollar Index (DXY) is keeping its bullish momentum as it is trading above the 93.00 psychological level. US 10-year Treasury yields are also trading higher on the day, suggesting that the Trump's announcement might not stop the US dollar bullish run for the time being. 

Looking ahead investors will focus on Super Thursday, where the Bank of England is largely expected to leave rates on hold. On Wednesday, the US Producer Price Index (PPI) can offer some short-term trading opportunities but is not expected to be a major market mover. 

GBP/USD 4-hour chart 

The main trend is bearish and support is seen at the 1.3500 handle and at 1.3484 cyclical low, followed by 1.3457 swing low. The bulls are trying to reverse the bear trend as they are challenging the descending trend line. A clear break above the 1.3600-1.3650 resistance area would be a statement for the bulls and indicate a deeper pullback is underway in the current bear trend.