FxWirePro: GBP/USD edges lower ahead of key central bank meetings

•GBP/USD edged lower on Tuesday as sustained geopolitical tensions in the Middle East weighed on market sentiment.

•The conflict between Israel and Iran intensified for a fifth straight day, with U.S. President Donald Trump calling for an end to Iran’s nuclear program and hinting at possible negotiations involving senior U.S. officials.

•Markets are now squarely focused on this week's central bank decisions, with both the Bank of England and the Federal Reserve expected to hold interest rates steady.

•Fed policymakers begin their two-day meeting today, with investors on alert for potential commodity price shocks and soft U.S. data (including May’s retail sales and factory output).

•Traders will also scrutinize any fresh signals on the Fed’s rate-cut path, especially after the Bank of England’s quarter-point cut in May raised speculation of more easing.

•   Immediate resistance is located at 1.3631(23.6%fib), any close above will push the pair towards 1.3659(Higher BB)

•  Strong support is seen at 1.3518(June 15th low) and break below could take the pair towards 1.3433(38.2%fib).

  Recommendation: Good to buy around 1.3550 with stop loss of 1.3480 and target price of 1.3630