• GBP/USD held steady on Wednesday as investor confidence in the fragile Israel-Iran ceasefire encouraged a shift toward riskier assets and away from safe havens.
• The ceasefire brokered by U.S. President Donald Trump between Iran and Israel appeared to be holding on Wednesday, following signals from both nations a day earlier that their aerial conflict had come to a halt.
• On the macroeconomic front, recent surveys indicated further signs of a slowdown in Britain’s labour market, highlighting weaker pay growth that lags behind inflation and a notable decline in job vacancies—particularly for graduate-level positions.
• On Tuesday, Bank of England Governor Andrew Bailey highlighted signs of a cooling labour market and indicated that interest rates are likely to continue declining in the coming month.
• Technical indicators support a bullish outlook, with RSI holding at 59 and the pair trading above the 5-, 9-, and 11-day moving averages.
• Immediate resistance is located at 1.3639(23.6%fib), any close above will push the pair towards 1.3676(Higher BB)
• Strong support is seen at 1.3522(SMA 20) and break below could take the pair towards 1.3417(38.2%fib).
Recommendation: Good to buy around 1.3580 with stop loss of 1.3480 and target price of 1.3670
