• GBP/AUD traded marginally higher on Friday as investors absorbed the BoE’s rate outcome while awaiting the government’s budget later this month.
•The Bank of England maintained its key rate at 4%, lifting the pound on Friday as it steadied from multi-month lows and looked set for a small weekly rise.
• Traders are pricing in nearly a 60% chance that the BoE will cut rates by 25 basis points at its December 18 meeting.
• Meanwhile, Finance Minister Rachel Reeves signaled possible tax increases in the upcoming November 26 budget, citing the need for “hard choices” to maintain fiscal discipline.
• Immediate resistance is located at 2.0296 (38.2%fib), any close above will push the pair towards 2.0357 (SMA20).
• Immediate support is seen at 2.0017(23.6%fib) and break below could take the pair towards 1.9918 (Lower BB).
Recommendation: Good to buy around 2.0260 with stop loss of 2.0200 and target price of 2.0360
