• GBP/USD recovered some ground on Monday as investors digested a brief flare-up in the Middle East conflict and awaited Burnham's finance minister pick.
• Burnham, who secured a return to Parliament earlier this month, remains the only officially declared candidate to replace Prime Minister Keir Starmer and may be installed in Downing Street within a matter of weeks.
• Government appointments will not be announced until the selection process concludes, he said, adding that his policy agenda remains consistent with the party's 2024 manifesto, including its fiscal commitments.
• Burnham's choice of finance minister could prove crucial in determining whether UK borrowing costs remain under control.
• Immediate resistance is located at 1.3262(38.2%fib)), any close above will push the pair towards 1.3325(SMA 20)
• Strong support is seen at 1.3184(Daily low) and break below could take the pair towards 1.3082(Lower BB)
Recommendation: Good to sell around 1.3260 with stop loss of 1.3300 and target price of 1.3190
