• GBP/AUD recovered on Thursday as the deepening conflict in the Middle East kept investors nervous.
• The conflict entered its sixth day with intensified bombing, while Iran vowed retaliation for a U.S. attack on a ship far from the battle zone..
• The turmoil sparked a flight to safety, while rising inflation fears clouded the outlook and led investors to reassess traditional safe-haven assets.
· On the data front, Britain’s construction sector contracted for the 14th straight month in February, marking its longest downturn since the global financial crisis despite improving business optimism, a survey showed.
· S&P Global’s UK Construction PMI fell to 44.5 in February from 46.4 in January, indicating a deeper contraction in the sector..
• Immediate resistance is located at 1.9108 (SMA 20), any close above will push the pair towards 1.9278(38.2%fib).
• Strong support is seen at 1.8822 (23.6%fib ), and break below could take the pair towards 1.8783 (Lower BB).
Recommendation: Good to sell on around 1.9060 with stop loss of 1.9100 and target price of 1.9000
