June 24 (Reuters) - After Monday’s bullish key day reversal, GBP/USD has extended gains during Tuesday’s session, aided by the announcement of a ceasefire between Israel and Iran, and the passing of peak geopolitical uncertainty may allow market participants to revert back to the dollar short trade. The recent whippy price action means that positioning is likely less of a hurdle for a fresh leg lower in the greenback, which in turn should keep cable on the front foot.

In light of a couple of Fed officials leaving the door slight ajar for a July rate cut, upcoming U.S. data, namely payrolls and inflation, will be particularly interesting.

Elsewhere, Bank of England speakers offered little new insight, though while there is a risk of a more dovish BoE outlook, downside risks to GBP are likely better expressed against euro, as opposed to the dollar. That said, with the dust settling on the geopolitical front, GBP/USD can continue to drift higher. Resistance sits at 1.3650, which held on first attempt. A daily close above 1.3600 would likely embolden the bulls. Support resides at 1.3400.
gbpusd daily chart

(Justin McQueen is a Reuters market analyst. The views expressed are his own.)