• GBP/USD recovered from early dip on Friday as investors locked eyes on a potential U.S.-Iran peace deal,.
•Reports said the U.S. and Iran had to extend their ceasefire and lift shipping restrictions through the Strait of Hormuz, but the deal still awaits approval from U.S. President Donald Trump.
•Britain's reliance on energy imports leaves it more exposed than the U.S. to higher fuel costs. While oil prices have fallen in recent weeks, they remain almost 30% higher than before the war.
.• Financial markets are fully pricing one BoE quarter-point rate hike over the remainder of 2026 - in November - and only a roughly one-in-three chance of a second one.
• Bank of England Governor Andrew Bailey said on Friday that allowing inflation to remain above the central bank’s 2% target was appropriate given uncertainty surrounding the economic impact of the Iran war and the UK’s weak growth outlook.
• Immediate resistance is located at 1.3486( SMA 20), any close above will push the pair towards 1.3530(61.8%fib)
• Strong support is seen at 1.3371(38.2%fib) and break below could take the pair towards 1.3327(Lower BB).
Recommendation: Good to sell around 1.3500, with stop loss of 1.3570 and target price of 1.3430
