• GBP/USD firmed on Friday as investor sentiment improved after Iran moved to reopen the strategic Strait of Hormuz.
• Around 20% of the world’s LNG trade usually transits the Strait of Hormuz, but flows have nearly halted following U.S. and Israeli strikes on Iran on February 28.
• Oil prices plunged below $90 a barrel following the announcement, lifting stocks and government bonds higher.
• Bank of England Chief Economist Huw Pill said on Friday that the central bank's main focus should be getting inflation to its 2% target.
• Immediate resistance is located at 1.3599( Daily high), any close above will push the pair towards 1.3648(38.2%fib)
• Strong support is seen at 1.3512(50%fib) and break below could take the pair towards 1.3447(27th low ).
Recommendation: Good to buy around 1.3520, with stop loss of 1.3460 and target price of 1.3600.
