FxWirePro: GBP/AUD bulls gear up for next leg higher, eyes 2.0750 level

• GBP/AUD strengthened on Monday as investors shifted their focus to the Bank of England’s policy outlook, with expectations building ahead of its upcoming rate decision

• UK data showed a mixed outlook last week as the labour market softened while inflation hit its highest level in over a year.

• The data had little impact on market expectations, with a 25 bps BoE rate cut on August 7 still nearly fully priced in and about 50 bps of easing expected by year-end.  

• Bank of England Governor Andrew Bailey and Deputy PM Angela Reeves are set to address UK lawmakers and peers on Tuesday, with remarks scheduled to begin from 0915 GMT / 1300 GMT. 

• Their comments will be closely watched for clues on monetary policy direction ahead of the BoE’s expected August decision.

•  Immediate resistance is located at 2.0757(SMA 20), any close above will push the pair towards 2.0996 (Higher B).

• Strong support is seen at 2.0502(50%fib) and break below could take the pair towards 2.0442(Lower BB).

Recommendation: Good to buyaround 2.0670, with stop loss of 2.0590 and target price of 2.0750