• GBP/AUD initially fell but pared losses on Friday as investors assessed geopolitical tensions, a risk-off mood, and ongoing concerns over the U.K.’s fiscal outlook.
• Prime Minister Keir Starmer’s Labour Party lost a Manchester ward it had controlled for almost a century to the Green Party, highlighting the growing fragmentation of Britain’s long-standing two-party political system.
• Uncertainty surrounding Keir Starmer’s future and speculation that a more left-leaning successor could pursue higher public spending, potentially straining the UK’s finances, have weighed on sterling sentiment in recent weeks.
• Geopolitical risks also remain on investors' radar before a fresh round of nuclear talks between the U.S. and Iran in Geneva, Switzerland.
• Immediate resistance is located at 1.9014(Daily high), any close above will push the pair towards 1.9240(SMA 20).
• Strong support is seen at 1.8870 (23.6%fib) and break below could take the pair towards 1.8733 (Lower BB).
Recommendation: Good to sell on around 1.9000 with stop loss of 1.9060 and target price of 1.8910
