• GBP/USD gained early but gave up ground on Tuesday as risk aversion picked up ahead of President Donald Trump’s deadline for Iran to reopen the Strait of Hormuz, with no deal in sight.
• Trump threatened that "a whole civilization will die tonight" as Iran showed no sign of accepting his ultimatum to open the Strait of Hormuz by Tuesday evening, Washington time.
• Trading in the UK picks up on Tuesday after a long weekend break where markets were shut for the Good Friday and Easter Monday holidays.
• On the data front, Britain’s services firms reported the sharpest monthly rise in costs since 2021 in March, driven by higher energy and transport prices, highlighting inflation risks from the Iran war.
• The S&P Global Services PMI fell to 50.5 in March from 53.9 in February, below the initial 51.2 estimate and marking its lowest level in 11 months.
• Immediate resistance is located at 1.3305 (SMA20), any close above will push the pair towards 1.3351(38.2%fib)
• Support is seen at 1.3177(23.6%fib) and break below could take the pair towards 1.3149(Lower BB).
Recommendation: Good to sell 1.3280 with stop loss of 1.3380 and target price of 1.3200
