FxWirePro: GBP/AUD downside pressure builds, key support level in focus

• GBP/AUD declined sharply on Thursday after a report showed that British factory activity shrank at the fastest pace in 11 months.

•  The S&P Global UK Manufacturing Purchasing Managers' Index (PMI) fell to 47.0 in December, down from 48.0 in November and below the preliminary reading of 47.3..

• The decline signals a continued contraction in the UK manufacturing sector, marking a tough end to 2024.  

• A close below  50% fib, will likely trigger a new bearish phase with potential for 1.9400 level.

• Immediate resistance is located at 2.0048(38.2% fib), any close above will push the pair towards 2.0230(23.6% fib).

• Strong support is seen at 1.9886 (50% fib) and break below could take the pair towards 1.9728 (61.8% fib).

Recommendation: Good to sell on  around 2.0000, with stop loss of 2.0070 and target price of 1.9850