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

• GBP/USD dipped on Friday as escalating Middle East tensions and rising oil prices fueled inflation concerns, reinforcing expectations of further rate hikes by the Bank of England.

• Oil prices rose over 1% as the ongoing Iran conflict showed no signs of easing, with the U.S. preparing to deploy additional troops to the Middle East.

• UK fiscal concerns grew as February borrowing exceeded expectations, amid volatile debt costs and rising spending pressure linked to the Iran conflict

•  The BoE held rates at 3.75%, but flagged inflation risks, with markets pricing in a ~70% chance of an April hike and up to three rate increases by year-end.

• Prior to the conflict, investors had expected the BoE to lower borrowing costs as early as Thursday's meeting.

• Immediate resistance is located at 1.3402 (SMA 20), any close above will push the pair towards 1.3449(38.2%fib)

•  Support is seen at 1.3275(38.2%fib) and break below could take the pair towards 1.3200 (Lower BB).

Recommendation: Good to sell  around 1.3340 with stop loss of 1.3490   and target price of 1.3270