• GBP/AUD strengthened on Friday as investors assessed UK fiscal worries and the rate cut path, while weak global investor sentiment persisted ahead of a U.S. tariff deadline.
• The government's welfare reforms were not well received by ruling Labour Party members and stirred speculation about the future of finance minister Rachel Reeves.
• On the data front, UK construction PMI showed a slower downturn in June, as homebuilding rose but commercial activity declined.
• The S&P Global UK Construction Purchasing Managers' Index rose to 48.8 from 47.9 in May, a six-month high but still below the 50 threshold denoting growth.
• Market attention is now turning to the July 9 deadline for countries to finalize trade deals with the U.S.
• Immediate resistance is located at 2.0862(Daily high), any close above will push the pair towards 2.0997(38.2% fib).
• Strong support is seen at 2.0646(50% fib) and break below could take the pair towards 2.0583(Lower BB).
Recommendation: Good to buy around 2.0800, with stop loss of 2.0720 and target price of 2.0900
