• GBP/USD edged lower on Tuesday as Geopolitical tensions continued to weigh on investor sentiment as oil prices hit multi-week highs
• Oil prices climbed to multi-week highs after Iran-backed Houthis attacked Saudi energy facilities, while Tehran threatened the United States with “economic warfare,” intensifying concerns over potential disruptions to regional energy supplies ".
• Rising oil prices have intensified inflation concerns, pushing global bond yields to multi-month highs and putting further pressure on risk-sensitive assets..
• Markets are pricing in a 60% probability of a U.S. interest-rate hike next week, while traders expect the Bank of England (BoE) to keep interest rates unchanged..
• BoE Governor Andrew Bailey said the market’s interest-rate expectations curve reflected a “risk premium,” as investors remained concerned that further increases in energy prices could add to inflationary pressures.
•A key U.S. inflation report and economic growth data in the UK due later this week could influence these bets.
• Immediate resistance is located at 1.3554(SMA 20), any close above will push the pair towards 1.3593(61.8%fib)
• Strong support is seen at 1.3453(50% fib) and break below could take the pair towards 1.3432(Lower BB
Recommendation: Good to sell around 1.3560, with stop loss of 1.3660 and target price of 1.3480
