FxWirePro: GBP/USD downside pressure builds, key support level in focus

• GBP/USD dipped on Thursday as investors assessed the implications of the U.S.-Iran war entering its sixth day.

• Political pressure is mounting on Keir Starmer after his Labour Party suffered a shock defeat in a Greater Manchester by-election, while he has also faced criticism over his stance on the U.S.–Israel conflict with Iran.

•  Domestic economic data has been mixed, with Britain’s construction sector contracting for the 14th straight month in February, while services PMI showed stronger activity.

• A Bank of England survey showed UK employers’ wage growth expectations remained at their joint-lowest level in nearly four years in February.

•  Money market pricing now suggests only one quarter-point rate reduction by the Bank of England this year, compared with expectations for two cuts at the end of February.

• Immediate resistance is located at 1.34310(50%fib), any close above will push the pair towards 1.3523(50%fib)

•  Support is seen at 1.3259(38.2%fib) and break below could take the pair towards 1.3182(Dec 2nd low).

Recommendation: Good to sell  around 1.3330 with stop loss of 1.3400   and target price of 1.3250