• GBP/AUD edged lower on Tuesday as the pound came under pressure amid resurfacing concerns over the UK’s fiscal outlook and risk-off sentiment.
• Finance Minister Rachel Reeves reaffirmed her commitment to maintaining fiscal discipline in her upcoming November budget, ahead of the Bank of England’s rate decision later this week.
• In a rare pre-budget address, Rachel Reeves described her second annual budget as one of “hard choices,” aimed at safeguarding public services while reducing Britain’s debt—hinting at potential broad-based tax increases to avert a return to austerity
• Looking ahead, the Bank of England is expected to maintain interest rates at their current level on Thursday, though recent softer inflation and wage data could strengthen the case for a future cut.
• Immediate resistance is located at 2.0180 (Nov 5th high), any close above will push the pair towards 2.0262(38.2%fib).
• Immediate support is seen at 1.9990 (23.6%fib) and break below could take the pair towards 1.9908 (Lower BB).
Recommendation: Good to sell around 2.0100 with stop loss of 2.0180 and target price of 1.9960
