• GBP/AUD declined on Monday as investors awaited progress on trade talks with the U.S. ahead of the July tariff deadline..
• Canada scrapped its digital services tax on U.S. tech firms just hours before implementation, while the UK confirmed that a trade deal reducing U.S. tariffs on British cars and aircraft parts has taken effect.
• Market attention is now turning to the July 9 deadline for countries to finalize trade deals with the U.S.
• On the data front,Britain’s economy expanded at its fastest rate in a year in Q1 2025, driven by a rush in property purchases and accelerated manufacturing ahead of Trump’s import tariff hikes..
• Britain’s economy grew by 0.7% in Q1 2025, matching the preliminary estimate and marking the fastest quarterly expansion since early 2024, according to the Office for National Statistics.
• Immediate resistance is located at 2.1046(Higher BB), any close above will push the pair towards 2.1119(38.2% fib).
• Strong support is seen at 2.0835(50% fib) and break below could take the pair towards 2.0660(Lower BB).
Recommendation: Good to buy around 2.0860, with stop loss of 2.0650 and target price of 2.0950
