FxWirePro: GBP/USD gaining momentum for a move towards 1.3700 level

• GBP/USD firmed on Monday  as reduced UK political uncertainty and the Bank of England’s hawkish stance continued supported pound.

• Prime Minister Starmer pledged to remain in office on Friday, but speculation over possible leadership challenges intensified over the weekend after the election, with increasing criticism emerging from within his own party.

•In a speech on Monday, Starmer sought to calm growing unrest within his party, insisting he would prove critics wrong and reaffirming his intention to remain in power.

•Bank of England policymaker Megan Greene said it was prudent to wait “a little while” to assess the impact of the Iran war before making any decision on interest rates.

• GBP/USD recovered steadily, rebounding from Asian session lows to trade higher in early North American trading.

•   Immediate resistance is located at 1.3654( Daily high), any close above will push the pair towards 1.3703(38.2%fib)

•  Strong support is seen at 1.3559(50%fib) and break below could take the pair towards 1.3543(SMA 20 ).

  Recommendation: Good to buy around 1.3630, with stop loss of 1.3550 and target price of 1.3700