• GBP/AUD steadied on Thursday as recent positive indicators and this months UK-U.S. trade deal supported pound against Australian dollar.
• Last week’s inflation data prompted traders to abandon expectations of a rate cut at the Bank of England’s June meeting, with over 97% now anticipating the central bank will keep rates unchanged.
• The central bank lowered its benchmark interest rate by 25 basis points to 4.25% on May 8, citing easing inflationary pressures and a need to support economic growth..
• The UK economic calendar is relatively quiet for the rest of the week, with few major data releases scheduled—leaving market focus on broader global developments and central bank expectations.
• Immediate resistance is located at 2.1000 (Psychological level), any close above will push the pair towards 2.111(50% fib).
• Strong support is seen at 2.0905(61.8% fib) and break below could take the pair towards 2.0778 (SMA 21)
Recommendation: Good to buy around 2.0920, with stop loss of 2.0820 and target price of 2.1040
