FxWirePro : GBP/AUD gains as UK political tensions ease

• GBP/AUD strengthened on Thursday  as easing political tensions in the UK helped restore investor confidence and supported a recovery in the pair.

• Political calm returned after Finance Minister Rachel Reeves expressed confidence in her ability to handle the role, reassuring markets and easing recent concerns.

• Markets had been closely watching developments around a welfare bill in Parliament, where internal divisions within the Labour Party forced Prime Minister Keir Starmer to retreat from major spending cuts,  

• On the data front, UK services sector grew at its fastest pace in nearly a year in June, with the S&P Global UK Services PMI rising to 52.8 from 50.9 in May, signaling a solid rebound in activity.

• Meanwhile across the Atlantic, traders pared bets on a July rate cut by the U.S. Federal Reserve after data showed the country's labour market remained resilient in June.

• Technical indicators remain firmly bullish, with RSI at 51 and daily momentum studies (5, 11, and 14 DMAs) all trending upward.

• Immediate resistance is located at 2.0844(SMA 20), any close above will push the pair towards 2.0931(July 2nd high)

• Support is seen at 2.0684 (50%fib) and break below could take the pair towards 2.05631(Lower BB).

Recommendation: Good to buy  around 2.0740 with stop loss of 2.0650 and target price of 2.0830