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FxWirePro: GBP/AUD hovers around 1.8870, vulnerable to further losses

• GBP/AUD struggled for direction on Monday    as broader market sentiment turned risk-averse.

• Escalating tensions around the Strait of Hormuz weighed heavily on investor confidence, driving demand for the U.S. dollar as a safe-haven asset..

• Iranian media claimed a U.S. ship was targeted, but Axios, citing a senior U.S. official, rejected the report..

• President Donald Trump said the U.S. could resume strikes on Iran if “they misbehave,” raising doubts over the ceasefire.

• Looking ahead,traders are now turning their attention to upcoming U.S. nonfarm payrolls data, where expectations of a modest 62K increase and steady wage growth could further influence the pairs direction.

• Immediate resistance is located at 1.8902 (SMA 20), any close above will push the pair towards 1.8999(38.2%fib).

• Strong support is seen at 1.8781 (Lower BB), and break below could take the pair towards 1.8692(23.6%fib).

Recommendation: Good to sell  on  around 1.8900 with stop loss of 1.9000 and target price of 1.8820

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