• GBP/AUD edged higher, but gains were limited as renewed U.S. trade tensions and budget concerns kept investors cautious and in wait-and-see mode.
•Late on Friday, Trump announced his intention to double tariffs on imported steel and aluminum to 50%, with the new rates set to take effect starting Wednesday.
• On the data front, British manufacturing downturn eased in May but output, orders, and jobs still fell due to tax hikes and Trump’s tariffs, a survey showed Monday.
• The final reading of the S&P Global UK Manufacturing Purchasing Managers' Index (PMI), which measures factory activity, increased to 46.4 in May from 45.4 in April.
•Bank of England policymaker Catherine Mann emphasized the need to watch the effects of quantitative tightening as cuts begin. More MPC speakers are scheduled for Tuesday.
• Immediate resistance is located at 2.1068(38.2% fib), any close above will push the pair towards 2.1115(Higher BB).
• Strong support is seen at 2.0782(50% fib) and break below could take the pair towards 2.0506 (61.8% fib)
Recommendation: Good to buy around 2.0870, with stop loss of 2.0730 and target price of 2.1100
