FxWirePro: GBP/AUD struggle to extend its recovery, good to sell on rally

• GBP/AUD initially gained but ground on Friday    as investors assessed U.S.-Iran diplomatic talks in New York.

• Oil prices eased after two sessions of gains as investors balanced hopes for a U.S.-Iran truce against growing supply risks from escalating Houthi attacks on Saudi Arabia...

• The Middle East conflict has pushed up energy prices by disrupting supply flows, while resilient economic growth has prompted Fed officials to highlight the possibility of more rate increases after last week’s hike.

• The Bank of England kept interest rates unchanged last week, unlike the Fed and European Central Bank, but warned that prolonged conflict in Iran could increase the need for rate hikes..

•Money-market traders are pricing around 35 basis points of BoE tightening this year and more than 100 basis points by the end of 2027, while economists broadly expect a much more limited policy response.

• Immediate resistance is located at 1.8848(38.2%fib), any close above will push the pair towards 1.8976(Higher BB).
 

• Immediate support is seen at 1.8829(SMA 20) and break below could take the pair towards 1.8764(23.6%fib ).

Recommendation: Good to sell around 1.8750, with stop loss of 1.8800 and target price of 1.8680