• GBP/AUD dipped on Thursday as improving risk sentiment, driven by easing geopolitical tensions, supported demand for riskier assets.
• Risk tone improved after Israeli Prime Minister Benjamin Netanyahu ordered the start of peace talks with Lebanon and discussions about Hezbollah disarmament, even as fighting continued.
• Netanyahu's announcement follows Israel's biggest strike of the war in Lebanon and multiple officials advocating for a temporary ceasefire to allow for broader talks. .
· Iran's President Masoud Pezeshkian said that Israeli strikes on Lebanon violate the ceasefire agreement and would render upcoming negotiations meaningless.
· EU diplomat Kaja Kallas said the U.S.–Iran ceasefire should be extended to Lebanon and called for Hezbollah to disarm..
• Immediate resistance is located at 1.9040 (38.2%fib), any close above will push the pair towards 1.9092(SMA 20).
• Strong support is seen at 1.8786 (Lower BB), and break below could take the pair towards 1.8711(23.6%fib).
Recommendation: Good to sell on around 1.8970 with stop loss of 1.9100 and target price of 1.8900
