FxWirePro: GBP/USD remains range-bound amid growing Middle East instability concerns

• GBP/USD   initially dipped but recovered ground on Monday as investors reacted to reports that Iran had suspended message exchanges  revived concerns over Middle East tensions.

•Iran’s Tasnim news agency said Tehran has stopped message exchanges with the U.S. and is weighing steps to fully block the Strait of Hormuz.

• The BoE is monitoring how higher energy prices from a potential Strait of Hormuz closure could feed through the economy, while keeping rates unchanged for now..

• In UK politics, Andy Burnham remains the leading contender to succeed as the next Labour Party leader.

•Meanwhile,  several Fed officials are due to speak this week, alongside key US data including the ISM manufacturing survey and Friday’s May payrolls report.

• Markets expect employment to rise by 85,000 with unemployment steady at 4.3%, while stronger data could further reduce rate cut expectations

•   Immediate resistance is located at 1.3480(SMA 20), any close above will push the pair towards 1.3510(38.2%fib)

•  Strong support is seen at 1.3367(38.2%fib) and break below could take the pair towards 1.300(May 18th low).

  Recommendation: Good to sell  around 1.3470, with stop loss of 1.3560 and target price of 1.3400