FxWirePro: GBP/AUD eases slightly but trend is still bullish

• GBP/AUD eases on Monday as ongoing Middle East tensions weighed on investor sentiment.

.• Iran and Israel halted attacks after Trump urged both sides to “stop shooting,” though Iran warned it would resume strikes if Israel continues targeting Hezbollah in Lebanon.

.• The exchange followed Israeli strikes on Hezbollah strongholds in Beirut over the weekend, which triggered retaliatory escalation.

•Tehran ​has repeatedly said any deal with Washington to end the conflict must include a halt to Israel's campaign in Lebanon.

• A renewed escalation in the Middle East could boost oil prices, worsening UK inflation and pushing the BoE toward quicker tightening.

• Bank of England policymaker Alan Taylor said interest rates at their current level are restrictive for the economy and he sees no need for a rate increase, even with inflation pressures linked to the Iran war.
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• Immediate resistance is located at 1.8984( Higher BB), any close above will push the pair towards 1.9041(38.2%fib).

• Strong support is seen at 1.8989(SMA20) and break below could take the pair towards 1.8556 (23.6%fib).

Recommendation: Good to buy around 1.8880, with stop loss of 1.8800 and target price of 1.9050