• GBP/USD slipped lower on Thursday as decline was driven by the widening conflict in the Middle East and the subsequent surge in oil prices .
•Rising oil prices have raised concerns among investors that renewed energy-driven inflation could delay the Bank of England’s path toward achieving price stability.
• Britain remains vulnerable to higher energy prices as inflation is expected to rise again later this year despite data released on Wednesday showing domestic price pressures eased more than anticipated last month.
• The Bank of England is also widely expected to keep its lending rate steady when it meets next week...
•Money markets are fully pricing in a 25-basis-point rate hike by December, while investors see around an 87% probability of a second quarter-point increase.
• Money market traders are fully pricing in a hike by the November policy meeting, with a second rate hike priced in by April 2027.
• Immediate resistance is located at 1.3374(SMA20), any close above will push the pair towards 1.3433(50%fib)
• Strong support is seen at 1.3312(38.2%fib) and break below could take the pair towards 1.3169(23.6%fib).
Recommendation: Good to sell around 1.3350, with stop loss of 1.3440 and target price of 1.3280
