• GBP /AUD slipped lower on Tuesday as US-China trade truce lifted demand of risk sensitive Australian dollar.
• The United States and China announced a 90-day truce in their trade war on Monday, agreeing to reduce reciprocal tariffs and suspend other punitive measures as they work toward a longer-term deal
• The agreement reignited investor appetite for stocks, currencies, and commodities, with Tuesday's US inflation data further fueling the rally.
•On the data front, Britain’s labour market showed further signs of cooling, with falling employment and slowing wage growth likely to reassure the Bank of England that inflationary pressures are easing.
•Average weekly earnings excluding bonuses rose by 5.6% from January to March year-on-year, marking the slowest pace of growth since the three months to November, according to the Office for National Statistics
• Immediate resistance is located at 2.0782(38.2% fib), any close above will push the pair towards 2.1000 (Psychological level).
• Strong support is seen at 2.0483 (23.6% fib) and break below could take the pair towards 2.0394 (Lower BB)
Recommendation: Good to sell around 2.0550 , with stop loss of 2.0650 and target price of 2.0460
