FxWirePro: GBP/AUD recovers some ground, geopolitics holds center stage

• GBP/AUD  strengthened on Monday as ongoing Middle East tensions continue to weigh on risk sentiment and limit upside momentum.

•Geopolitical uncertainty was underscored by reports from Iran’s Tasnim news agency stating that Tehran has halted message exchanges with the U.S., even as former President Trump suggested that talks are still continuing at a “rapid pace,” highlighting mixed signals around diplomatic progress.

•Looking ahead,  Australia's Q1 GDP data is due Wednesday, with growth expected to slow to 0.5% q/q from 0.8% in Q4, reflecting the impact of the war and higher interest rates.

•RBA monetary policy board external member Ian Harper is scheduled to speak at 0030 GMT, while RBA Governor Bullock and Deputy Governor Kent are set to appear before a Senate Committee on Wednesday, which could offer further clues on the policy outlook.

.• Immediate resistance is located at 1.8890( SMA20), any close above will push the pair towards 1.8926(50%fib).

• Strong support is seen at 1.8755(23.6%fib) and break below could take the pair towards 1.8615 ( lower BB).

Recommendation: Good to sell around 1.8870, with stop loss of 1.8960 and target price of 1.8700