• 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
