• GBP/USD dipped on Wednesday as fading hopes for peace in the Middle East combined with growing political uncertainty in the UK dampened investor sentiment toward sterling.
• UK Prime Minister Keir Starmer is facing growing pressure to resign after Labour’s heavy local election losses, though he vowed to continue governing despite calls from nearly 80 lawmakers to step down.
• Markets are now focusing on the UK inflation report due on May 20 for further signals on the Bank of England’s policy outlook.
•Annual UK CPI inflation stood at 3.3% in March, and investors will be watching closely for signs that persistent price pressures could keep the BoE on a hawkish path..
• Immediate resistance is located at 1.3547( SMA 20), any close above will push the pair towards 1.3597(50%fib)
• Strong support is seen at 1.3469(61.8%fib) and break below could take the pair towards 1.3435(Lower BB).
Recommendation: Good to buy around 1.3500, with stop loss of 1.3473 and target price of 1.3580
