FxWirePro: GBP/USD tumbles below 1.3400, might break another key floor

• GBP/USD slipped sharply lower  on Monday   as investors sought the safety US dollar after U.S. and Israeli strikes on Iran raised the risk of a protracted conflict.

The United States and Israel launched their most ambitious attacks on Iran in decades on Saturday, killing Supreme Leader Ayatollah Ali Khamenei, sinking Iranian warships and hitting more than 1,000 targets so far.

• Military strikes by the United States and Israel on Iran showed no sign of lessening, while Iran responded with missile barrages across the region, risking dragging its neighbours into the conflict.

•U.S. President Donald Trump indicated that military operations could continue for another four weeks, suggesting tensions may remain elevated in the near term.

• Market participants remain highly sensitive to developments in the Middle East, particularly the risk of a prolonged closure of the Strait of Hormuz, a key global energy chokepoint.

•   Immediate resistance is located at 1.3420(38.2%fib), any close above will push the pair towards 1.3831(23.6%fib)

•  Strong support is seen at 1.3318(Daily low) and break below could take the pair towards 1.3243(38.2%  fib).

  Recommendation: Good to sell  around 1.3380 with stop loss of 1.3430 and target price of 1.3300