FxWirePro: GBP/AUD declines further as soft UK data and fiscal concerns drag pound

• GBP/AUD extended its slide   on Friday  as lackluster UK data and fiscal uncertainty weighed on pound

•  British retail sales posted a modest recovery in June, rising after a sharp decline in May, but the rebound failed to meet economists’ expectations..

• This came on the heels of Thursday’s data revealing sluggish growth in UK business activity for July, alongside the sharpest decline in employment in five months.

• Mounting concerns over the UK’s fiscal outlook, coupled with stubbornly high inflation and surging gilt yields are also exerting sustained pressure on the pound.

• The European Union and the United States may finalize a framework trade agreement this weekend, according to EU officials and diplomats.

• Resistance stands at 2.0540(Daily high), 2.0668(SMA 20), and 2.0810(61.8%fib).

• Key   support seen at 2.0431 (50%fib), 2.0288(Lower BB), and 2.0071 (38.2%fib).

Recommendation: Good to sell around 2.0480, with stop loss of 2.0550 and target price of 2.0430