• GBP/USD edged higher on Wednesday but gains were limited as investor’s awaited fresh catalyst for further movement.
• The sharp rise in long-dated yields, particularly the 20-year and 30-year maturities, reflects mounting investor concerns over Britain’s fiscal outlook and debt sustainability, leaving the pound under sustained pressure.
• Attention turns to UK politics. Prime Minister Keir Starmer reshaped his economic team on Monday, a move that unsettled markets.
• The political calendar will be busy today, with the first Prime Minister’s Questions (PMQs) since parliament’s summer recess scheduled between 1100 and 1130 GMT. Market participants will be monitoring for any policy signals.
• Immediate resistance is located at 1.3484(SMA 20), any close above will push the pair towards 1.3550(38.2%fib)
• Strong support is seen at 1.3331 (50%fib) and break below could take the pair towards 1.3183(July 31st low).
Recommendation: Good to sell around 1.3410 with stop loss of 1.3500 and target price of 1.3360
