• GBP/AUD slipped sharply lower on Thursday as the pair was dragged lower by a risk-off mood sparked by uncertainty around U.S. trade talks.
• Investors remained on edge as talks between Washington and its key trading partners, including the EU, failed to yield a breakthrough..
• The lack of clarity over potential tariffs particularly on autos and other critical sectors weighed on overall market sentiment, prompting traders to favor commodity-linked currencies like the Australian dollar.
• On the data front , attention now shifts both UK GDP figures and the U.S. Consumer Price Index (CPI)
• Technical indicators have turned bearish, with the RSI at39 and both the 5,9 and 11 day moving averages trending are downwards
• Immediate resistance is located at 2.0722(50% fib), any close above will push the pair towards 2.0854 (July 9th high).
• Strong support is seen at 2.0525(Lower BB) and break below could take the pair towards 2.0359(Lower BB).
Recommendation: Good to sell around 2.0630, with stop loss of 2.0950 and target price of 2.0520
