• GBP /AUD edged lower on Friday as markets responded positively to signs of easing tensions in the U.S.-China trade dispute.
• The ongoing trade dispute between the two largest economies has been a source of market volatility for some time
• Markets continue to closely monitor President Trump’s shifting rhetoric on tariffs and the Federal Reserve’s monetary policy.
•However, signs of potential de-escalation, such as discussions about tariff reductions and negotiations to resolve outstanding issues, sparked optimism among investors.
• On the data front, UK retail sales volumes rose by 0.4% in March alone, after downwardly revised growth of 0.7% in February, the Office for National Statistics said on Friday.
• Immediate resistance is located at 2. 0889 (Daily high), any close above will push the pair towards 2. 0948 (50 % fib).
• Strong support is seen at 2. 0702 (61.8% fib) and break below could take the pair towards 2. 0495 (April 2nd low))
Recommendation: Good to sell around 2.0800, with stop loss of 2.0900 and target price of 2.0700
