• GBP/USD eased on Tuesday as investors returning from a long weekend and reassessed fading optimism over progress in talks aimed at ending the U.S.-Iran conflict.
• Sentiment remained cautious as Iran’s senior envoys held talks with Qatar’s prime minister, although both Washington and Tehran downplayed expectations for a swift breakthrough.
• Market mood weakened following reports of fresh U.S. strikes on Iranian boats and missile launch sites, reviving geopolitical tensions in the region.
• Sterling has wavered throughout the war, largely as investors have bought and sold the safe-haven U.S. dollar on the back of developments in peace talks.
• Immediate resistance is located at 1.3503(SMA 20), any close above will push the pair towards 1.3535(50%fib)
• Strong support is seen at 1.3453(May 25th low) and break below could take the pair towards 1.3394(61.8%fib)
Recommendation: Good to buy around 1.3440, with stop loss of 1.3400 and target price of 1.3550
