• GBP/AUD held steady on Wednesday as the fragile ceasefire between Israel and Iran boosted global risk appetite.
• Investors maintained a cautiously optimistic outlook, which helped stabilize GBP/AUD following recent fluctuations driven by geopolitical tensions and shifting central bank expectations.
• Bank of England Governor Andrew Bailey stated on Tuesday that signs of a softening labour market were becoming more evident and reiterated his view that interest rates are likely to continue declining in the coming months.
• Money markets currently price in an 80% probability of a Bank of England rate cut in August, reflecting growing expectations of policy easing amid signs of a cooling UK economy.
• Technical signals are bullish as RSI is at 58, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 2.1047(Higher BB), any close above will push the pair towards 2.1144 (38.2% fib).
• Strong support is seen at 2.0844 (50% fib) and break below could take the pair towards 2.0667 (Lower BB)
Recommendation: Good to buy around 2.0980 , with stop loss of 2.0900 and target price of 2.1100
