FxWirePro: GBP/USD biased higher but rally currently stretched

• GBP/USD advanced  on Friday  as investor optimism for easing Middle East tensions rose after Israel announced on Thursday its intention to pursue talks with Lebanon.

• Iran has cited Israel's continuing attacks on Lebanon as a key sticking point in its ceasefire agreement with the United States, which requires Iran to reopen the Strait of Hormuz

• The Strait of Hormuz remained shut on Friday and Israel traded fire with Hezbollah in Lebanon, which the United States and Iran each described as violations of their ceasefire deal.

• On the data front, U.S. consumer prices increased by the most in nearly four years, though an underlying measure of inflation that excludes the volatile food and energy components rose only moderately last month.

• Immediate resistance is located at 1.3465(50%fib), any close above will push the pair towards 1.3491(Higher BB)

•  Support is seen at 1.3248(38.2%fib) and break below could take the pair towards 1.3229(Lower BB).

Recommendation: Good to buy around 1.3450 with stop loss of 1.3400   and target price of 1.3530