FxWirePro: GBP/USD slips another leg lower, eyes 1.3400 level

• GBP/USD slipped lower on Tuesday   as dollar ​strengthened firmed   renewed U.S.-Iran hostilities raised fears of inflation

• Renewed focus on the U.S.-Iran conflict pushed oil prices and inflation expectations higher, reinforcing expectations that the Federal Reserve could raise interest rates. September Fed hike odds remained near their post-Jackson Hole highs at around 68%..

 • The dollar strengthened following hawkish Federal Reserve policy expectations spurred by Chair Kevin Warsh's comments at the Jackson Hole Symposium last week.

• Adding to the dollar bid is the rise in global yields after Japanese yields climbed above 3% for the first time in 30 years.

• Economic data on Tuesday painted a mixed picture. Britain's manufacturing activity in August expanded at its slowest pace ⁠since ​March while BOE data showed that lenders approved the ​fewest mortgages in July since January 2024..

•   Immediate resistance is located at 1.3552(SMA 20), any close above will push the pair towards 1.3561(38.2%fib)

•  Strong support is seen at 1.3483(50%fib) and break below could take the pair towards 1.3442(SMA 20).

  Recommendation: Good to sell  around 1.3530, with stop loss of 1.3600 and target price of 1.3400