• GBP/USD edged higher on Wednesday as investors reassessed developments around potential U.S.–Iran talks and their implications for the interest rate outlook..
• Investors bet on a Middle East resolution despite the U.S. blockade of Iran’s ports after failed weekend peace talks.
• U.S. President Donald Trump said Iran is willing to make a deal, but stressed that any agreement must not allow Tehran to develop a nuclear weapon.
• Looking ahead, attention will be on the UK’s February GDP, industrial production, and trade balance data to assess whether the economy is maintaining pace or losing traction.
• Meanwhile, markets have increased expectations of tightening by the Bank of England, pricing in around three 25 basis point rate hikes in 2026, potentially beginning in April, amid renewed inflation concerns.
• Immediate resistance is located at 1.3595(Daily high), any close above will push the pair towards 1.3672(38.2%ib)
• Support is seen at 1.3534(38.2%fib) and break below could take the pair towards 1.3500(April 14th low).
Recommendation: Good to buy around 1.3560 with stop loss of 1.3460 and target price of 1.3650
