• GBP/AUD dipped on Tuesday as Australian dollar firmed as risk appetite improved on rising hopes the Middle East war will end soon.
• Despite the most intense U.S.-Israel airstrikes on Iran, investors took comfort after Donald Trump said the war was “very complete, pretty much.”.
• Oil remained in focus as Iran threatened to block Gulf shipments until attacks stop, with prices swinging sharply and falling 11% to below $90 a barrel.
· The spike in oil prices since the U.S.-Israeli strikes on Iran has revived inflation fears globally, putting central banks in a tough spot.
• Immediate resistance is located at 1.9046 (SMA 20), any close above will push the pair towards 1.9301(38.2%fib).
• Strong support is seen at 1.8814 (23.6%fib ), and break below could take the pair towards 1.8737(Lower BB).
Recommendation: Good to sell on around 1.8870 with stop loss of 1.9000 and target price of 1.8800
