• GBP/USD advanced on Tuesday as sterling was buoyed by hopes of U.S.-Iran peace talks, even as the U.S. began a blockade of Iran's ports..
• Investors bet on a Middle East resolution despite the U.S. blockade of Iran’s ports after failed weekend peace talks.
• U.S. President Donald Trump said Iran is willing to make a deal, but stressed that any agreement must not allow Tehran to develop a nuclear weapon.
• Rising energy prices have stoked inflation concerns, prompting investors to brace for potential rate hikes from major central banks.
• Money markets now price in nearly two rate hikes in 2026, reversing earlier expectations of two BoE rate cuts before the war began.
• Immediate resistance is located at 1.3591(Daily high), any close above will push the pair towards 1.3674(38.2%ib)
• Support is seen at 1.3532(38.2%fib) and break below could take the pair towards 1.3389(50%fib).
Recommendation: Good to buy around 1.3560 with stop loss of 1.3460 and target price of 1.3600
