•GBP/USD declined on Monday as dollar was supported by safe-haven flows as investors assessed the risk of an Iranian response to U.S. attacks on its nuclear sites.
• U.S. forces launched targeted strikes on three major Iranian nuclear sites over the weekend, intensifying regional tensions and fueling concerns of a wider conflict in the Middle East.
• Flash PMI data released Monday indicated a modest expansion in UK business activity for June. However, the figures had little immediate impact on the British pound as markets remained focused geopolitical developments.
• The S&P Global UK Composite Purchasing Managers' Index rose to 50.7 from 50.3 in May - edging further above the 50.0 growth threshold.
• Technical indicators support a bearish outlook, with RSI holding at 41 and the pair trading below the 5-, 9-, and 11-day moving averages.
• Immediate resistance is located at 1.3507(June 20th high), any close above will push the pair towards 1.3602(23.6%fib)
• Strong support is seen at 1.3345(38.2%fib) and break below could take the pair towards 1.3147(50%fib).
Recommendation: Good to sell around 1.3400 with stop loss of 1.3490 and target price of 1.3310
