• GBP/USD hit one month high on Friday as improving risk sentiment and weaker dollar supported the sterling.
• The pair's move to 1.3452 marked its highest level since June 15, when sterling peaked at 1.3460, highlighting continued bullish momentum as investors trimmed long-dollar positions.
• GBP/USD has staged a solid recovery after hitting a seven-month low of 1.3140 on June 24. A modest pullback to 1.3381 attracted buyers, suggesting demand remains firm on dips.
•Investors also continued to monitor developments in the Middle East, although market volatility eased as the week drew to a close.
• On the political front, Andy Burnham moved closer to becoming Britain's next prime minister after securing overwhelming backing from Labour MPs to succeed Keir Starmer. His expected appointment on July 20 is seen as reducing political uncertainty.
• Immediate resistance is located at 1.3478(50%fib), any close above will push the pair towards 1.3526(Higher BB)
• Strong support is seen at 1.3407(Daily low) and break below could take the pair towards 1.3338(SMA 20).
Recommendation: Good to buy around 1.3410, with stop loss of 1.3330 and target price of 1.3500
