• GBP/USD struggled for direction on Thursday as markets await clearer signals from geopolitical developments and key inflation data.
•Israel and Lebanon agreed to implement a ceasefire on Wednesday, but hopes for broader de-escalation faded after Hezbollah rejected the deal and Israel said it would keep troops in Lebanon.
•The developments complicated U.S. President Donald Trump's efforts to secure a broader peace agreement with Iran..
• On data front, Britain's construction activity shrank at the fastest pace in six years last month, as economic uncertainty and rising inflation linked to the Iran war hit new work.
• On the monetary policy front, the Bank of England appears set on a steady near-term course, with futures markets pricing in two 25bp rate hikes in Q4 2026.
• Immediate resistance is located at 1.3457(SMA 20), any close above will push the pair towards 1.3487(50%fib)
• Strong support is seen at 1.3330(38.2%fib) and break below could take the pair towards 1.3307(Lower BB).
Recommendation: Good to sell around 1.3430 with stop loss of 1.3480and target price of 1.3350
