• GBP/AUD steadied on Monday ahead of a widely expected interest rate cut by the Bank of England later this week.
• Traders are nearly fully pricing in a rate cut at Thursday’s BoE meeting, with another cut expected by mid-2026 and a potential second reduction by year-end..
• Governor Andrew Bailey’s stance is considered pivotal following recent data showing inflation eased to 3.6% in October, with further declines anticipated.
• UK wage growth data is scheduled for Tuesday, followed by consumer price inflation (CPI) on Wednesday, both closely watched by investors.
• The UK jobless rate is expected to rise to a 5-year high of 5.1% in October, while UK interest rates are forecast to drop.
• Immediate resistance is located at 2.0200(38.2%fib), any close above will push the pair towards 2.0376(50%fib).
• Immediate support is seen at 2.0003 (23.6%fib) and break below could take the pair towards 1.9941 (Lower BB).
Recommendation: Good to buy around 2.0130 with stop loss of 2.0070 and target price of 2.0250
