• GBP/AUD initially but managed to recover some ground as investors shifted focus to upcoming policy signals from the U.S. Federal Reserve and the Bank of England.
• Both the Fed and the BoE are widely expected to leave interest rates unchanged, but investors will scrutinize accompanying statements and economic projections for any clues on future rate paths.
• The Fed’s forward guidance and Chair Jerome Powell’s comments may offer insight into whether the central bank still sees room for cuts later this year amid mixed U.S. data..
• The BoE, which cut rates by 25 basis points in May, may signal further easing is possible depending on how inflation and growth evolve.
• Money markets widely expect the Bank of England to hold interest rates at 4.25% on Thursday, while pricing in two 25 basis point cuts by year-end — with the next likely coming in September.
• Immediate resistance is located at 2.0853(June 17th high), any close above will push the pair towards 2.1044(38.2% fib).
• Strong support is seen at 2.0715(50% fib) and break below could take the pair towards 2.0675(Lower BB).
Recommendation: Good to buy around 2.0730, with stop loss of 2.0650 and target price of 2.0830
