• GBP/AUD traded in narrow range on Friday as investors digested the U.S. nonfarm payrolls data, which showed stronger-than-expected job growth.
• The report reinforced the view that the Federal Reserve may delay rate cuts, boosting the U.S. dollar and risk-off sentiment.
• As a result, demand for higher-yielding currencies like the Australian dollar softened, and the pound retreated modestly against the Aussie.
• As long as the pair remains above the key support zone, the near-term bias stays constructive.
• Immediate resistance is located at 2.1055(38.2% fib), any close above will push the pair towards 2.1134(Higher BB).
• Strong support is seen at 2.0706 (50% fib) and break below could take the pair towards 2.0548 (Lower BB).
Recommendation: Good to buy on dips around 2.0800, with stop loss of 2.0720 and target price of 2.0900
