FxWirePro: GBP/USD hits 5-week low on UK political turmoil

• GBP/USD dipped to hit  5-week low  on Friday as investors weighed a possible leadership challenge to Prime Minister Keir Starmer from Andy Burnham, while also remaining concerned about inflation risks.

.•Andy Burnham said he would contest a vacant parliamentary seat, potentially paving the way for a leadership challenge to Keir Starmer after Labour’s poor local election performance last week..

• Investors fear Andy Burnham’s “business-friendly socialism” could lead to higher government spending and borrowing, adding pressure to Britain’s strained public finances.

•Separately, global markets were spooked by the prospect of escalation in the Iran conflict after U.S. President Donald Trump said his patience with Tehran was running out.

•Oil prices rose, with Brent crude gaining more than 2%, raising inflation concerns for the UK if disruptions in the Strait of Hormuz continue and energy prices remain high.

•   Immediate resistance is located at 1.3413( Daoly high), any close above will push the pair towards 1.3455(50%fib)

•  Strong support is seen at 1.3296(38.2%fib) and break below could take the pair towards 1.3184(April 3rd low).

  Recommendation: Good to selll around 1.3400, with stop loss of 1.3470 and target price of 1.3230