• GBP/USD edged higher on Tuesday as investors turned their attention to Thursday's Bank of England policy meeting.
• The Bank of England is widely expected to keep interest rates unchanged at 3.75% on Thursday, despite oil prices climbing above $100 a barrel following the U.S.-Iran conflict, which has raised concerns that renewed energy-driven inflation could delay future policy easing..
• Beyond this week's policy event, sterling is expected to remain under pressure as weak UK inflation and sluggish economic growth continue to weigh on sentiment.
•The recent change in government has also revived long-standing fiscal concerns, with investors awaiting concrete measures from Prime Minister Andy Burnham to stimulate the economy without putting additional strain on public finances.
• Immediate resistance is located at 1.3313(38.2%fib), any close above will push the pair towards 1.3380(SMA 20)
• Strong support is seen at 1.3216(Lower BB) and break below could take the pair towards 1.3135(23.6%fib).
Recommendation: Good to sell around 1.3330, with stop loss of 1.3370 and target price of 1.3260
