FxWirePro: GBP/AUD loses momentum but outlook is bullish

GBP/AUD dipped on Tuesday as rising tensions in Iran have hammered risk appetite. Trump reimposed a naval blockade on Iranian ports and threatened to strike power plants and bridges next week unless Tehran returns to...

• GBP/AUD dipped on Tuesday as rising tensions in Iran have hammered risk appetite. • Trump reimposed a naval blockade on Iranian ports and threatened to strike power plants and bridges next week unless Tehran returns to negotiations—the latest U.S. escalation in the conflict.. •

The U.S. launched fresh strikes on Iranian targets to degrade capabilities used for attacks on commercial shipping in the Strait of Hormuz, the military said.. • Oil prices surged this week, typically weighing more on the pound than the dollar due to the UK's reliance on energy imports and persistent inflation.. •

Meanwhile, U.S. consumer inflation slowed more than expected in June, tempering expectations for U.S. Federal Reserve policy tightening. • Immediate resistance is located at 1.9355(23.6%fib), any close above will push the pair towards 1.9450(Higher BB). • Immediate support is seen at 1.9171(SMA 20) and break below could take the pair towards 1.9081(June 24th low).

Recommendation: Good to buy around 1.9200, with stop loss of 1.9140 and target price of 1.9280