• GBP/AUD dipped on Thursday as market sentiment shifted firmly toward risk-on trading after reports emerged that the United States and Iran could extend their ceasefire agreement.
• According to Axios, Washington and Tehran were considering a 60-day ceasefire extension to facilitate negotiations over Iran’s nuclear program.
• The U.S. and Iran reportedly reached a tentative agreement to extend the ceasefire, pending approval from President Donald Trump, after Iran targeted a U.S. air base in Kuwait in response to U.S. strikes.
• Precious metals and equities also benefited from the improved sentiment, with gold and silver turning positive alongside gains in global stock markets, reinforcing the broader shift toward risk-sensitive trades.
• On The data front, the US personal consumption expenditures (PCE) price index rose 0.4% month-on-month in April after shooting up 0.7% in March.
• Immediate resistance is located at 1.8794 (38.2%fib), any close above will push the pair towards 1.8930(Higher BB)
•Support is seen at 1.8610(SMA20) and break below could take the pair towards 1.8541 (23.6%fib).
Recommendation: Good to sell around 1.8770, with stop loss of 1.8860 and target price of 1.8700
