• GBP/AUD dipped lower on Monday as escalating tensions in the Middle East dampened risk appetite, pushing investors toward commodity-linked currencies like the Australian dollar
• Geopolitical risks remained elevated as the Israel-Iran conflict showed little progress toward de-escalation.
• Escalating geopolitical tensions added a fresh layer of uncertainty to an already fragile global economy, sending oil prices higher just as G7 leaders prepare to meet.
• With global markets on edge, the Bank of England will join other central banks this week in delivering its latest policy decision.
• Money markets widely expect the Bank of England to hold interest rates at 4.25% on Thursday, while pricing in two 25 basis point cuts by year-end — with the next likely coming in September.
• Immediate resistance is located at 2.0843(50% fib), any close above will push the pair towards 2.0930(38.2% fib).
• Strong support is seen at 2.0762(61.8% fib) and break below could take the pair towards 2.0718(Lower BB).
Recommendation: Good to buy around 2.0790, with stop loss of 2.0700 and target price of 2.0880
