• GBP/AUD traded little changed on Monday as markets awaited progress from U.S.-China trade talks in London.
• Market participants are closely watching this week’s trade talks between top U.S. and Chinese officials in London.
• Hopes for a breakthrough to ease tariff tensions are helping sustain demand for higher-yielding assets, including the Aussie. A positive outcome could further boost risk sentiment and drive the AUD higher.
• On the data front, traders await Tuesday’s NAB Business Confidence index, a barometer of corporate sentiment in Australia, followed by U.S. May inflation data on Wednesday.
• Immediate resistance is located at 2.0892(June 6th high), any close above will push the pair towards 2.0980(50% fib).
• Strong support is seen at 2.0767 (61.8% fib) and break below could take the pair towards 2.0674 (Lower BB).
Recommendation: Good to buy on dips around 2.0780, with stop loss of 2.0700 and target price of 2.0900
