FxWirePro: GBP/USD downside pressure builds, key support level in focus

• GBP/USD dipped o Wednesday after data showed a more-than-expected increase in U.S. producer prices.

• The data indicates Federal Reserve may delay rate cuts due to higher oil prices from the Middle East conflict and is expected to keep rates unchanged on Wednesday..

• Data from the U.S. Labor Department showed the Producer Price Index rose 0.7%, below economists’ expectations of a 3% increase.

• Meanwhile,  Middle East war entered its third week with no signs of easing, as Israel and Iran intensified attacks following the killing of Tehran’s security chief. Meanwhile, oil prices declined after Iraq resumed exports through the Ceyhan pipeline, easing supply concerns.

• The ongoing conflict has pushed global rate expectations more hawkish, with Federal Reserve now seen cutting rates only once in 2026, while Bank of England is priced for a high chance of a 25bp rate hike in Q4 2026..

• Immediate resistance is located at 1.3405 (50%fib), any close above will push the pair towards 1.3410 (SMA20)

•  Support is seen at 1.3215(38.2%fib) and break below could take the pair towards 1.3178(Lower BB).

Recommendation: Good to sell  around 1.3340 with stop loss of 1.3450   and target price of 1.3270