• GBP/USD firmed on Monday as investors await a packed week of economic data and global rate decisions while tracking US-Iran peace talks.
• Prospects for Middle East peace dimmed over the weekend after U.S. President Donald Trump called off his envoys’ trip to Pakistan and said Iran could reach out when it was ready to negotiate.
• All eyes are on the Bank of England, which is widely expected to keep interest rates unchanged this week as it assesses growing economic risks from the Iran war..
• A survey from the Confederation of British Industry showed the country's retailers reported the broadest year-on-year decline in sales in more than 40 years as the Iran war raised households' inflation fears.
• From a technical perspective rising daily RSI indicator suggest that bullish momentum is building.
• Immediate resistance is located at 1.3574(50%fib), any close above will push the pair towards 1.3663(Higher BB)
• Support is seen at 1.3440(61.8%fib) and break below could take the pair towards 1.3434(SMA 20).
Recommendation: Good to buy around 1.3550 with stop loss of 1.3450 and target price of 1.3630
