FxWirePro: GBP/AUD stuck in range but maintains bearish bias

• GBP/AUD initially gained but gave up ground  on Tuesday  as investors were cautious renewed geopolitical tensions after the U.S. launched fresh strikes on Iran.

  • The U.S. launched a barrage of airstrikes on Iran on Tuesday, triggering Iranian retaliation and marking the conflict’s most serious escalation in weeks.

• Attention now shifts to Australia’s second-quarter real GDP report due Wednesday. The Reuters consensus expects GDP to rise 0.3% quarter-on-quarter and 1.8% year-on-year.

•A weaker-than-expected result could increase expectations for a more dovish RBA stance, while a stronger reading could provide some support for the Australian dollar.

•Markets will also watch appearances by RBA officials Sarah Hunter and Dr James Bishop before the Senate Committee on Thursday for further clues on the central bank’s policy outlook.

• Immediate resistance is located at 1.8936(38.2%fib), any close above will push the pair towards 1.9050(50%fib).

• Immediate support is seen at 1.8864 (Lower BB) and break below could take the pair towards 1.8795(23.6%fib).

Recommendation: Good to sell around 1.8930 with stop loss of 1.9000 and target price of 1.8860