• GBP/AUD steadied around 2.0940 as investors digested fresh commentary from Bank of England (BoE) officials.
• Bank of England Governor Andrew Bailey reaffirmed on Tuesday that the central bank will maintain a "gradual and careful" approach to interest rate cuts, citing heightened global trade policy uncertainty.
• Bailey emphasized that while the trajectory for rates remains downward, the pace and extent of further cuts are now less clear due to the unpredictable nature of global economic conditions .
• Deputy Governor Sarah Breeden, viewed as a centrist on the MPC, told lawmakers she saw grounds for a rate cut last month, even without the impact of global trade tensions.
• MPC member Swati Dhingra, who backed a 50bps rate cut last month, said supply chain data shows inflation is easing in the medium term—unlike in 2022 when it surged to 11%.
• Immediate resistance is located at 2.0995 (50% fib), any close above will push the pair towards 2.1076(Higher BB).
• Strong support is seen at 2.0731(61.8% fib) and break below could take the pair towards 2.0583(Lower BB)
Recommendation: Good to buy around 2.0910, with stop loss of 2.0830 and target price of 2.1100
