• GBP/AUD initially dipped but recovered ground as investors digested soft British labor market data and awaited the UK March CPI on Wednesday.
• Britain's labour market showed signs of weakening ahead of the employer tax hike, but wage growth remained strong, complicating the Bank of England's response amid potential economic impacts from U.S. trade tariffs.
• March's consumer price inflation is expected to slow to 2.7% from 2.8% in February, still above the Bank of England's 2% target. The BoE forecasts inflation may rise to 4% later this year.
• The upcoming CPI release is crucial for assessing the UK's inflation trajectory and will influence the Bank of England's monetary policy decisions..
• Immediate resistance is located at 2.1103(38.2%fib), any close above will push the pair towards 2.1473(Higher BB).
• Immediate support is seen at 2.0733 (50%fib) and break below could take the pair towards 2.0549(Match 31st low).
Recommendation: Good to buy around 2.0900, with stop loss of 2.0820 and target price of 2.0980
