GBP/AUD steadied on Thursday as gains were driven by improved risk sentiment.
• Strength in gold, silver, copper and equities, also added to the positive risk tone and underpinned the pair.
• The UK political landscape, while still evolving, has become less of a drag on sterling following Prime Minister Keir Starmer's resignation.
•Attention has now shifted to Reform Party leader Nigel Farage's resignation and subsequent bid for reelection, leaving a modest political risk premium in the pound, though it is no longer the primary driver of price action.
• From a technical standpoint, bulls are looking for a close within the daily cloud at 1.9365-1.9288, with a breakthrough targeting the upper Bollinger band at 1.9438.
• Immediate resistance is located at 1.8812( SMA20), any close above will push the pair towards 1.8852(50%fib).
• Strong support is seen at 1.8549(23.6%fib) and break below could take the pair towards 1.8509 ( lower BB).
Recommendation: Good to buy around 1.9300, with stop loss of 1.9220 and target price of 1.9350
