• GBP/USD dipped on Wednesday as investors monitored the fragile Middle East truce and assessed domestic inflation data.
• Iran tightened its grip over the Strait of Hormuz after U.S. President Donald Trump extended the ceasefire with Iran but uncertainty persisted over whether the deal will hold..
• Oil prices moved higher, with Brent crude rising above $100 a barrel, following reports that at least three container ships were hit by gunfire in the Strait of Hormuz.
• Official data showed British consumer price inflation rose to 3.3% in March from 3% in February, underscoring the Iran war's impact on price levels.
• Markets have also been closely focused on interest-rate expectations after the Iran war pushed up inflation forecasts. Money markets were last pricing in one Bank of England rate hike this year, with some chance of a second.
• Immediate resistance is located at 1.3557(50%ib), any close above will push the pair towards 1.3600(April 17th high)
• Support is seen at 1.3427(61.8%fib) and break below could take the pair towards 1.3393(SMA 20).
Recommendation: Good to buy around 1.3500 with stop loss of 1.3460 and target price of 1.3600
