• GBP/USD eased on Thursday as ahead of a local election in Manchester that could offer an early read on Prime Minister Keir Starmer's political standing.
• Political uncertainty has weighed on sentiment, with the vote in Gorton and Denton in Greater Manchester’s northwestern region representing a fresh political challenge for Starmer.
• The prime minister’s judgment has been questioned following several policy reversals and the appointment of Peter Mandelson as ambassador to Washington.
• On the other hand, sluggish GDP growth, higher unemployment in the fourth quarter, and lower inflation in January have strengthened expectations that the Bank of England may need to start cutting interest rates soon.
•The BoE left policy rates unchanged in a narrow 5–4 split at its meeting earlier this month. Bailey voted to hold.
• Immediate resistance is located at 1.3576 (50%fib), any close above will push the pair towards 1.3585(SMA 20)
• Strong support is seen at 1.3449(61.8%fib) and break below could take the pair towards 1.3427(Lower BB).
Recommendation: Good to sell around 1.3500, with stop loss of 1.3550 and target price of 1.3430
