• GBP/AUD dipped on Thursday as sterling weakened after a senior UK government member resigned, fuelling speculation over Prime Minister Keir Starmer’s leadership and renewed political instability..
• British Health Minister Wes Streeting resigned, saying he had lost confidence in Prime Minister Keir Starmer’s leadership.
• Long seen as a potential challenger to Starmer, Streeting was forced to deny last year that he was plotting to oust the prime minister. Now, their rivalry is out in the open.
• On The data front,Britain’s economy unexpectedly expanded in March, with GDP rising 0.3% m/m versus expectations for a 0.2% contraction, capping a strong first quarter.
• Immediate resistance is located at 1.8712 (May 13th high), any close above will push the pair towards 1.8830 (38.2%fib)
•Support is seen at 1.8584(23.6%fib) and break below could take the pair towards 1.8475 (Lower BB).
Recommendation: Good to sell around 1.8600, with stop loss of 1.8650 and target price of 1.8530
