FxWirePro : GBP/AUD soars as China's tariffs escalate U.S. trade war

• GBP /AUD   rose sharply on Friday as China's imposition of tariffs on US goods intensified tariff war weighing on Australian dollar.

•   China, which is currently facing 54% tariffs on exports to the U.S., retaliated with additional tariffs of 34% on all U.S. goods from April 10, intensifying a trade war between the two major global economies.

• Beijing unveiled a slew of countermeasures, including additional duties of 34% on all U.S. goods, which are on top of the 10-15% tariffs placed on roughly $21 billion worth of agricultural trade in early March.

• On the data front, Britain's construction industry shrank sharply last month, with civil engineering declining at the fastest rate since 2020.

• Immediate resistance is located at 2.1435(38.2% fib), any close above will push the pair towards 2.1719 (23.6% fib).

• Strong support is seen at 2.1221 (50% fib) and break below could take the pair towards 2.0977  (61.8% fib))

Recommendation: Good to buy around 2.0700, with stop loss of 2.0620 and target price of 2.0790