• GBP/AUD dipped on Tuesday as sterling weakened as investors brace for a potential change of leadership that could weaken fiscal discipline.
•Prime Minister Keir Starmer is facing growing pressure to resign after Labour’s heavy local election losses, but he told ministers he would continue governing despite nearly 80 lawmakers calling for his departure.
• Starmer said no formal effort had been made to trigger a leadership contest, while a minister said no cabinet member challenged him during the meeting..
• Investors were not reassured, fearing a left-leaning successor could raise spending amid already strained UK finances.
• Immediate resistance is located at 1.8832( SMA20), any close above will push the pair towards 1.9036 (Higher BB).
• Strong support is seen at 1.8695(23.6%fib) and break below could take the pair towards 1.8651 ( Lower BB).
Recommendation: Good to sell around 1.8710, with stop loss of 1.8800 and target price of 1.8650
