FxWirePro: GBP/USD drops towards 1.3350 level, heads deeper into bear territory

• GBP/USD dipped on Thursday as escalating tensions in the Middle East pushed investors toward the relative safety of the U.S. dollar. 

• Heightened geopolitical uncertainty increased demand for safe-haven assets, prompting traders to reduce exposure to risk-sensitive currencies such as sterling.

• The move followed intensifying conflict in the region, which fueled concerns about potential disruptions to global energy supplies and rising inflation pressures.

• Sterling is likely to face continued downward pressure in the near term as a toxic combination of heightened geopolitical instability and rising energy costs undermines the UK’s economic resilience.

•  Money markets have swung wildly in the last two weeks. Traders' assumption at the end of February ⁠was for the Bank of England to deliver two interest-rate cuts this year.

• Immediate resistance is located at 1.3428(38.2%fib), any close above will push the pair towards 1.3469(SMA 20)

•  Support is seen at 1.3305(Lower BB) and break below could take the pair towards 1.3274(23.6%fib).

Recommendation: Good to sell  around 1.3360 with stop loss of 1.3400   and target price of 1.3250