• GBP/AUD strengthened on Tuesday as risk sentiment deteriorated following President Trump’s comments on Iran negotiations.
• Trump said no U.S.-Iran talks were underway or scheduled and claimed the Strait of Hormuz was open, contradicting Iran’s earlier statement that the key shipping route remained closed.
•Britain’s labour market weakened further in Q2, with slower private-sector wage growth and vacancies falling to their lowest level in more than five years.
•The data is likely to keep the Bank of England on hold for now, although the BoE may wait until year-end to assess whether higher energy costs from the Iran war are feeding into wage growth.
• Immediate resistance is located at 1.9140(50%fib), any close above will push the pair towards 1.9236(Higher BB).
• Immediate support is seen at 1.8992(Lower BB) and break below could take the pair towards 1.8915(Lower BB).
Recommendation: Good to sell around 1.9140, with stop loss of 1.9230and target price of 1.9070
