• GBP/AUD traded in tight range on Friday as market participants adopted a cautious stance ahead of high-stakes trade talks between the United States and China scheduled for the weekend.
Investor sentiment remained subdued, with limited risk appetite as uncertainty looms over the potential outcome of the discussions.
• The talks, set to take place in Switzerland on May 10, aim to resolve ongoing tariff disputes that have disrupted global trade flows and added pressure to risk-sensitive currencies like the Australian dollar.
• Technical indicators for GBP/AUD show signs of consolidation, with momentum lacking a clear direction.
• Immediate resistance is located at 2.0893 (38.2%fib ), any close above will push the pair towards 2.1059 (Higher BB).
• Strong support is seen at 2.0646(Daily low ), and break below could take the pair towards 2.0480(50%fib).
Recommendation: Good to sell around 2.0800 with stop loss of 2.0900 and target price of 2.0720
