• GBP/USD recovered ground on Monday despite lingering U.S.-Iran tensions, as improving risk sentiment and a softer U.S. dollar supported the pair
• A U.S.-Iran ceasefire looked increasingly fragile on Monday after Washington seized an Iranian cargo ship accused of breaching its blockade, prompting Tehran to vow retaliation and reject fresh peace talks.
• Vice President JD Vance and the U.S. delegation are set to land in Pakistan within hours for talks on Iran, President Donald Trump told the New York Post in an interview on Monday,.
• In its eighth week, the war has triggered an unprecedented energy supply shock, driving oil prices higher due to the de facto closure of the Strait of Hormuz, which handles about 20% of global oil flows.
• Looking forward, UK jobs data is due Tuesday; U.S. traders track ADP (4-week avg), Retail Sales, and Warren speaking at the Senate.
• Immediate resistance is located at 1.3595(50%ib), any close above will push the pair towards 1.3639(Higher BB)
• Support is seen at 1.3469(50%fib) and break below could take the pair towards 1.3382(SMA 20).
Recommendation: Good to buy around 1.3520 with stop loss of 1.3460 and target price of 1.3600
