• GBP/AUD dipped on Tuesday as traders assessed ongoing geopolitical developments Middle East and awaited UK inflation report.
• Persistent Middle East tensions and rising oil prices could keep inflationary pressures elevated, reinforcing expectations that the Bank of England will remain cautious on policy easing..
• The latest UK employment report had little impact on the pound, with slightly weaker employment and a modest rise in unemployment doing little to alter expectations for the Bank of England's interest rate outlook.
• Investor focus now shifts to Wednesday's UK inflation report, where both headline and core CPI are expected to edge lower.
• Immediate resistance is located at 1.9196(38.2%fib), any close above will push the pair towards 1.9236(SMA 20).
• Immediate support is seen at 1.9077 (50%fib) and break below could take the pair towards 1.9020(Lower BB).
Recommendation: Good to sell around 1.9120, with stop loss of 1.9180 and target price of 1.9080
