FxWirePro: GBP/USD claws back some losses but recovery likely muted

• GBP/USD initially dipped but recovered some ground on Thursday as investors assessed Middle East developments.

• Iran's supreme leader has issued a directive that ​the country's near-weapons-grade uranium should not be sent abroad, ​hardening Tehran's stance on one of the main U.S. ⁠demands at peace talks.

•The prolonged conflict has already pushed up ​oil prices and intensified concerns about inflation.

•Separately, S&P Global’s preliminary UK Composite Purchasing Managers’ Index for May dropped to 48.5 from 52.6 in April, marking the first reading below 50.0 since April 2025.  

• The figure came in well below the 51.6 median forecast, with PMI readings below 50.0 indicating a contraction in activity.

•Weak business activity data contrasted with stronger recent indicators, as first-quarter GDP showed solid growth, while inflation slowed to 2.8% in April from 3.3% in March, coming in below the 3.0% forecast.

•   Immediate resistance is located at 1.3469 (50%fib)), any close above will push the pair towards 1.3513(SMA 20)

•  Strong support is seen at 1.3353 (38.2%fib) and break below could take the pair towards 1.3302(Daily low).

  Recommendation: Good to sell  around 1.3440, with stop loss of 1.3500 and target price of 1.3350