• GBP/USD extended decline on Monday as sterling continued to face selling pressure as investors adopted a more cautious stance toward riskier assets amid heightened geopolitical uncertainty.
•The U.S. struck Iranian military targets near the Strait of Hormuz, while Tehran said it attacked U.S. assets across the region, marking the most significant exchange of fire since July.
• Escalating geopolitical tensions have fueled fears of surging energy prices and weaker economic growth, creating challenges for the UK economy.
• Meanwhile, U.S. private payroll growth came in below expectations in August, but gold prices remained largely unmoved as investors looked ahead to Friday's nonfarm payrolls report.
• Immediate resistance is located at 1.3550(SMA20), any close above will push the pair towards 1.3578(50%fib)
• Strong support is seen at 1.3465(38.2%fib) and break below could take the pair towards 1.3430(SMA 20).
Recommendation: Good to sell around 1.3500, with stop loss of 1.3550 and target price of 1.3450
