• GBP/AUD held firm on Monday as pound benefiting from reduced geopolitical risks after tensions between the U.S. and Iran eased, alongside a more stable UK political environment following Keir Starmer's resignation.
• The easing of political and fiscal uncertainty has shifted market attention back to monetary policy, making this week's U.S. jobs report a crucial indicator for the Fed's near-term interest rate outlook.
• Investor concerns over UK public finances have eased after Andy Burnham vowed to preserve the existing fiscal rules, encouraging a drop in 10-year gilt yields to 4.72% from their pre-resignation peak of around 5.2%..
• Looking ahead, Investors will also be watching a series of key events this week, notably the U.S. employment report and Wednesday's speech by Federal Reserve Chair Kevin Warsh at the ECB's annual conference in Sintra, Portugal.
• Immediate resistance is located at 1.9249((38.2%fib), any close above will push the pair towards 1.9306(Higher BB).
• Strong support is seen at 1.9115(50%fib) and break below could take the pair towards 1.8994(SMA 20).
Recommendation: Good to buy around 1.9240, with stop loss of 1.9180, and target price of 1.9300
