• GBP/AUD consolidated around 1.8930 as investors awaited UK GDP data for fresh clues about the strength of the British economy.
• The UK economy is forecast to contract by 0.1% after expanding 0.4% in July, while investors will also monitor manufacturing and industrial production figures.
.• A stronger-than-expected set of UK economic data could offer the pound some near-term relief, but a sustained recovery will likely depend on whether sterling can reclaim key resistance levels
• Immediate resistance is located at 1.8980 (50%fib), any close above will push the pair towards 1.9100(Sep 30th high).
• Immediate support is seen at 1.8895 (Oct 13th low) and break below could take the pair towards 1.8778(38.2%fib).
Recommendation: Good to sell around 1.8970 with stop loss of 1.9060 and target price of 1.8900
