FxWirePro: GBP/AUD outlook weaker on renewed downside pressure

• GBP/AUD  held below 1.8700 level  on Wednesday  as  fading hopes for peace in the Middle East combined with growing political uncertainty in the UK  dampened investor sentiment toward sterling.

• UK Prime Minister Keir Starmer is facing mounting pressure to resign after Labour’s heavy local election losses, but he has vowed to remain in office despite calls from nearly 80 MPs to step down..

• Markets are now turning their attention to the UK inflation report due on May 20 for additional clues on the Bank of England’s policy outlook.

•Annual UK CPI inflation stood at 3.3% in March, and investors will be watching closely for signs that persistent price pressures could keep the BoE on a hawkish path.

• Immediate resistance is located at 1.8715( May 13th high), any close above will push the pair towards 1.8792(SMA20).

• Strong support is seen at 1.8608(23.6%fib) and break below could take the pair towards 1.8590 ( Lower BB).

Recommendation: Good to sell around 1.8670, with stop loss of 1.8800 and target price of 1.8600