• GBP/USD recovered some ground d on Tuesday as risk appetite improved and the U.S. currency eased on hopes for a Middle East peace deal.
• UK political uncertainty and concerns about economic growth continue to limit the British Pound’s upside potential.
.• Investors were also tracking signs of reduced tensions in the Middle East after Iran and Israel halted mutual attacks at the urging of U.S. President Donald Trump, who said he might develop an “idea” for an Iran deal in the coming days.
• Meanwhile, concerns over inflation, driven by higher energy costs from the ongoing conflict, have led markets to expect a 25-basis-point interest rate increase by the Bank of England in September.
• On the data front, Investors will focus on the upcoming UK Gross Domestic Product (GDP) data release and US inflation figures.
• Immediate resistance is located at 1.3325(38.2%fib), any close above will push the pair towards 1.3434(SMA 20)
• Strong support is seen at 1.3303(Lower BB) and break below could take the pair towards 1.3271(23.6%fib).
Recommendation: Good to sell around 1.3390, with stop loss of 1.3440 and target price of 1.3290
