FxWirePro: GBP/USD weakens as escalating Middle East tensions weighs on sterling

• GBP/USD slipped lower on Thursday as geopolitical tensions, domestic weakness, and diverging monetary policy expectations pressured the pair.

• The UK's political, fiscal, and economic landscape characterised by inflationary pressures and sluggish growth   continues to weigh on sterling.

• BoE is expected to deliver modest rate increases of around 50-basis points in 2026, recent communications from BoE officials signal a cautious, data-dependent approach, with policymakers awaiting clearer evidence on second-round inflation before accelerating tightening.

• Attention now turns to Friday’s UK April GDP data, which will be a key domestic catalyst for sterling direction.

•   Immediate resistance is located at 1.3411(SMA 20)), any close above will push the pair towards 1.3437(50%fib)

•  Strong support is seen at 1.3321(Lower BB) and break below could take the pair towards 1.3269(38.2%fib).

  Recommendation: Good to sell  around 1.3350, with stop loss of 1.3450 and target price of 1.3270