• GBP/AUD moved lower on Wednesday as the U.S.-Japan trade accord lifted risk-sensitive currencies like the Australian dollar.
• U.S. President Donald Trump finalized a trade deal with Japan, cutting auto import tariffs and sparing Tokyo from new duties in return for a $550 billion investment and loan package directed to the U.S.
• The trade deal which lowers auto import tariffs and spares Tokyo from harsh new levies — impacts the yen by boosting economic prospects and influencing the Bank of Japan’s cautious path toward rate hikes.
• This week, investor focus shifts to key UK economic indicators, with the flash Purchasing Managers' Index (PMI) for July due on Thursday, followed by June retail sales data on Friday.
• Meanwhile, retail sales figures will provide insight into consumer spending trends, a crucial component of GDP, and could influence expectations around future monetary policy decisions by the Bank of England.
• Immediate resistance is located at 2.0754(July 17th high), any close above will push the pair towards 2.0815 (38.2% fib).
• Strong support is seen at 2.0492(50% fib) and break below could take the pair towards 2.0358(Lower BB).
Recommendation: Good to buy around 2.0530, with stop loss of 2.0430 and target price of 2.0630
