• GBP/USD rose on Friday as investors assessed early local election results showing heavy losses for Prime Minister Keir Starmer's Labour Party..
• British Prime Minister Keir Starmer vowed to remain in office to “deliver change” after his Labour Party suffered heavy losses in local elections, raising fresh doubts about his leadership and governing ability.
• The U.S. dollar weakened after the U.S. and Iran exchanged fire in the Middle East, even as President Donald Trump downplayed the tensions and maintained that the ceasefire remained intact.
• Domestic data showed British house prices fell for a second consecutive month in April, as uncertainty linked to the Iran conflict weighed on buyer demand and dampened market activity.
•In the U.S., data showed employment rose more than expected in April, signalling ongoing labour market resilience and reinforcing expectations that the Federal Reserve may keep interest rates unchanged for the time being.
• Immediate resistance is located at 1.3631( Higher BB), any close above will push the pair towards 1.3681(38.2%fib)
• Strong support is seen at 1.3536(50%fib) and break below could take the pair towards 1.3444(Lower BB).
Recommendation: Good to buy around 1.3620, with stop loss of 1.3560 and target price of 1.3700.
