• GBP/AUD edged higher on Wednesday as investors paused to assess the impact of rising borrowing costs after a surge in bond yields.
• Long-term government bond yields from Japan to Britain hit new multi-year highs on Wednesday amid persistent worries about the fiscal health of major economies, though markets showed signs of stabilizing after a sharp sell-off.
• Britain’s 30-year gilt yields climbed to their highest level since 1998, underscoring mounting pressure in the UK bond market.
• On the data front, UK services sector saw its strongest growth in over a year in August, driven by rising new business and easing U.S. tariff concerns, though tax hike fears lingered, a survey showed Wednesday.
• The S&P Global UK Services PMI climbed to 54.2 in August from 51.8 in July, its strongest reading since April 2024.
• Immediate resistance is located at 2.0653(38.2%fib), any close above will push the pair towards 2.0721(SMA 20)
• Support is seen at 2.0477(23.6%fib) and break below could take the pair towards 2.0499 (Lower BB).
Recommendation: Good to sell around 2.2550 with stop loss of 2.2700 and target price of 2.2350
