FxWirePro: GBP/USD slides as UK political uncertainty weighs on pound

GBP/USD slipped on Friday after the Labour Party suffered an election setback, weighing on sentiment toward the British pound

• Britain’s Green Party won a landslide victory in a Manchester area long dominated by Labour, increasing pressure on Starmer to defend his leadership amid political turmoil and growing calls for his resignation...

• British Prime Minister Keir Starmer vowed to fight political extremes on both sides after the Labour Party suffered a defeat to the Green Party, which won in a long-time Labour stronghold..

• The defeat followed growing pressure on Keir Starmer, with lawmakers calling for his resignation over the controversial appointment of Peter Mandelson as ambassador to Washington despite past links to Jeffrey Epstein.

• The pound is highly sensitive to UK politics, with uncertainty over Keir Starmer’s future and the possibility of a more left-leaning successor adding pressure on sentiment.

•Looking ahead into next week, the UK data calendar is relatively light with only the latest BoE lending data and the final PMIs for February on the docket.

•   Immediate resistance is located at 1.3564 (50%fib), any close above will push the pair towards 1.3578(SMA 20)

•  Strong support is seen at 1.3435 (61.8%fib) and break below could take the pair towards 1.3378(Lower BB).

  Recommendation: Good to sell around 1.3470, with stop loss of 1.3560 and target price of 1.3400