FxWirePro: GBP/AUD runs out of steam but maintains bullish outlook

• GBP/AUD dipped on Tuesday      as the deepening conflict in the Middle East kept investors nervous.

• U.S. Defense Secretary Pete Hegseth said on Tuesday the ​next few days in the war against Iran would be decisive and ⁠warned Tehran that the conflict would intensify if it did not ​make a deal.

• The turmoil sparked a flight to safety, while rising inflation fears clouded the outlook and led investors to reassess traditional safe-haven assets.

·  Traders anticipate higher energy prices will force central banks to keep policy tight to prevent a surge in second-round inflation, and have changed expectations most dramatically for the Bank of England.

·In late February, markets were pricing two BoE rate cuts this year, and now ​see at least two ​hikes. Moves have been ⁠less dramatic for the Federal Reserve.

• Immediate resistance is located at 1.9375(Higher BB), any close above will push the pair towards 1.9455(Higher BB).

• Strong support is seen at 1.9056 (38.2%fib ), and break below could take the pair towards 1.9000(Psychological level).

Recommendation: Good to buy   around 1.9050 with stop loss of 1.8950 and target price of 1.9120