FxWirePro: GBP/USD falls to two-day low, scope for further downside

• GBP/USD slipped lower hit two-day low on Wednesday as higher oil prices amid Gulf tensions strengthened the safe-haven dollar.

• Iranian attacks damaged Kuwait's airport and injured dozens, while ⁠the U.S. military carried out strikes near the Strait of Hormuz, as ​talks to halt the war showed little sign of progress..

•  British services activity slipped into contraction in May for the first time in just over a year, as the Iran war pushed up costs and weighed on business sentiment, a survey showed on Wednesday.

• The S&P Global UK Services PMI fell to 49.3 in May from 52.7 in April, marking the first contraction in output since April 2025, although it came in above the flash estimate of 47.9.

•Money market ‌futures ⁠are not fully pricing in a quarter-point rate hike until the September meeting, while just under two hikes are priced by the end of the year.

•   Immediate resistance is located at 1.3474(SMA 20) , any close above will push the pair towards 1.3506(50%fib)

•  Strong support is seen at 1.3364(38.2%fib) and break below could take the pair towards 1.3321(SMA20).

  Recommendation: Good to sell  around 1.3450, with stop loss of 1.3530 and target price of 1.3390