• GBP/USD initially gained but gave up ground as investors assesed latest flare-up in the Middle East.
• Military clashes between the U.S. and Iran resumed in the Middle East, disrupting shipping through the Strait of Hormuz and hindering oil flows.
•Looking ahead, traders will be focused on jobs and inflation data for August that is due before the Fed’s September 15-16 meeting for clues on whether a hike is likely.
• Reuters’ median economist estimate sees U.S. employers adding 55,000 jobs in August.
• August producer price inflation data is due on September 10, with consumer inflation figures following on September 11.
• Immediate resistance is located at 1.3584(50%fib), any close above will push the pair towards 1.3654(Aug 26th high)
• Strong support is seen at 1.3444(38.2%fib) and break below could take the pair towards 1.3383(Lower BB).
Recommendation: Good to sell around 1.3570, with stop loss of 1.3650 and target price of 1.3500
