• GBP/USD extended decline on Wednesday as investors increased positioning in the dollar on prospects of more Fed rate hikes.
• Investor sentiment has shifted toward a potential rate increase after the Fed’s announcement, driven by concerns over inflation resilience.
• Meanwhile,Prime Minister Keir Starmer's resignation this week paved the way for a leadership contest that could potentially end in former Greater Manchester mayor Andy Burnham taking the role in July or September.
•On the macro front, traders are anticipating the Bank of England to lift borrowing costs by at least 25 basis points before the year ends.
• Immediate resistance is located at 1.3252(38.2%fib), any close above will push the pair towards 1.3355(SMA20)
• Strong support is seen at 1.3133(Lower BB) and break below could take the pair towards 1.3051(Lower BB).
Recommendation: Good to sell around 1.3170, with stop loss of 1.3260 and target price of 1.3080
