• GBP/USD dipped on Tuesday as fading Middle East peace hopes and renewed UK political concerns weighed on sentiment.
• Starmer rejected calls to resign, saying he would continue governing despite mounting pressure after heavy local election losses..
• Starmer’s position appears weak as over 80 Labour lawmakers have urged him to announce a resignation timeline..
• Investors were also worried about the lack of progress in the Middle East conflict after U.S. President said the Iran ceasefire was “on life support.” ".
• Political divisions and fading hopes for a U.S.-Iran peace deal after Iran rejected Washington’s latest proposal have drained momentum from sterling bulls.
• Immediate resistance is located at 1.3649( Higher BB), any close above will push the pair towards 1.3670(38.2%fib)
• Strong support is seen at 1.3524(50%fib) and break below could take the pair towards 1.3432(Lower BB).
Recommendation: Good to buy around 1.3520, with stop loss of 1.3470 and target price of 1.3580
