• GBP/AUD edged higher on Thursday as investors kept a wary eye on British local elections.
• UK elections see millions voting, with Keir Starmer facing a potential setback as Labour Party braces for losses..
• UK elections for nearly 5,000 council seats could weaken the two-party system if voters turn to populist and nationalist parties.. .
· Polls suggest Nigel Farage’s Reform UK could expand its council control in England and emerge as a key opposition force in Scotland and Wales against Scottish National Party and Plaid Cymru.
· Election losses could intensify frustration within Labour Party over Keir Starmer’s leadership, with some lawmakers potentially pushing for a timeline for his departure.
• Immediate resistance is located at 1.8883 (SMA 20), any close above will push the pair towards 1.9129(38.2%fib).
• Strong support is seen at 1.8747(23.6%fib), and break below could take the pair towards 1.8689 (Lower BB).
Recommendation: Good to sell on around 1.8860 with stop loss of 1.8900 and target price of 1.8800
