• GBP/USD dipped on Tuesday as optimism over a potential U.S.-Iran ceasefire supported the dollar, while strong March retail sales reinforced confidence in the U.S. economy.
• A two-week U.S.-Iran ceasefire is set to expire around 8 p.m. ET on Wednesday, with fresh peace talks expected this week.
• Traders remain positive that a deal will be reached with U.S. Vice President JD Vance expected in Islamabad on Wednesday to hold talks to end the war .
• U.S. retail sales rose more than expected in March, driven by a surge in gasoline prices due to the Iran war, while tax refunds supported broader consumer spending.
• Meanwhile, the UK labour market cooled only slightly in the three months to February, with wage growth easing less than expected and the fall in unemployment largely driven by students leaving the workforce.
• Immediate resistance is located at 1.3548 (Daily high), any close above will push the pair towards 1.3639 (38.2%fib).
• Strong support is seen at 1.3470(50% fib) and break below could take the pair towards 1.33383(Lower BB).
Recommendation: Good to buy around 1.3460, with stop loss of 1.3370and target price of 1.3500
