• GBP/AUD eased slightly on Friday as investors adopted a cautious stance ahead of next week’s UK-European Union summit.
• Britain's foreign minister will meet European counterparts Monday to discuss Ukraine aid and regional defence ahead of PM Starmer’s EU summit next week..
• Next week’s release of UK Consumer Price Index (CPI) data is also expected to be a key driver for the cross, especially in light of current Bank of England pricing..
• Markets have largely priced in the most hawkish possible outlook for rate cuts, with expectations indicating that the BoE will be slow to ease policy amid ingering inflation concerns.
• Immediate resistance is located at 2.0825(50% fib), any close above will push the pair towards 2.1000(Psychological level).
• Strong support is seen at 2.0553(61.8% fib) and break below could take the pair towards 2.0454 (Lower BB)
Recommendation: Good to buy around 2.0710, with stop loss of 2.0650 and target price of 2.0800
