FxWirePro: GBP/AUD advances as pound benefits from UK GDP data

• GBP/AUD rose sharply on Thursday as modest expansion in the UK economy helped boost investor confidence in sterling.

• Data on Thursday showed that Britain’s economy grew 0.1% in August from July, matching expectations.

• The figures suggest that while the UK economy is not accelerating, it is also not contracting, providing a slightly firmer backdrop for upcoming fiscal policy decisions.

• Investor attention is turning to next week’s inflation data, which could influence whether the Bank of England opts for rate cuts in November, December, or waits until early 2026.

• Traders are currently pricing in a 44% probability of a 25 basis-point rate cut by the Bank of England in December, with markets fully expecting interest rate easing by March 2026.

• Immediate resistance is located at 2.0742(50%fib), any close above will push the pair towards 2.0988(Aug20th high).

• Immediate support is seen at 2.0569 (Daily low) and break below could take the pair towards 2.0443(SMA 20).

Recommendation: Good to buy around 2.0700 with stop loss of 2.0600and target price of 2.0780