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

• GBP/USD dipped on Tuesday  as demand for the safe-haven US dollar strengthened following fresh developments around Iran, weighing on risk-sensitive currencies.

• Iran has reportedly hardened its negotiating stance despite ongoing mediation efforts, adding to geopolitical uncertainty and supporting the dollar’s appeal.

• The preliminary composite Purchasing Managers' Index, covering manufacturers and non-retail services businesses, sank to 51.0 in March from 53.7 in February which was the joint-highest since August 2024.

•    Meanwhile, Bank of England policymaker Huw Pill struck a hawkish tone, signalling he is likely to vote in favour of a rate hike in April.

• The pair’s drop to 1.3367 marks its weakest level since pulling back from Monday’s two-week high of 1.3480, indicating a shift in near-term momentum.

• Immediate resistance is located at 1.3440 (50%fib), any close above will push the pair towards 1.3545 (Higher BB)

•  Support is seen at 1.3371(Daily low) and break below could take the pair towards 1.3259(38.2%fib).

Recommendation: Good to sell  around 1.3390 with stop loss of 1.3450   and target price of 1.3300