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• GBP/AUD steadied on Monday as investors cheered news of a U.S.–China tariff truce.
• The U.S. and China, the world’s two largest economies, agreed to a temporary mutual tariff reduction while negotiating a lasting trade deal..
• Under the deal, U.S. tariffs on Chinese imports will drop to 30% from 145%, while China’s duties on U.S. goods fall to 10% from 125%.
• Traders now await the U.S. Consumer Price Index data, due on Tuesday, to get direction on the Federal Reserve's policy path. Other key data sets due this week include the Producer Price Index and retail sales.
• Immediate resistance is located at 2.0842(23.6% fib), any close above will push the pair towards 2.1000 (Psychological level).
• Strong support is seen at 2.0533 (61.8% fib) and break below could take the pair towards .0421 (Lower BB)
Recommendation: Good to buy around 2.0660 , with stop loss of 2.0550 and target price of 2.0760
