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

• GBP/AUD fell on Thursday as cooler-than-expected British inflation data, coupled with a dovish tone from Bank of England policymaker weighed on the pound.

• UK inflation remained steady in September, below market and Bank of England forecasts, suggesting that price rises may have peaked and are likely to ease in the coming months.

• Bank of England policymaker Swati Dhingra said on Thursday that higher U.S. tariffs on imports are weighing on growth in the UK and are likely to exert downward pressure on British inflation over the medium term.

• Investors have increased expectations of monetary easing, pricing in roughly a 75% probability that the Bank of England will cut interest rates by 25 basis points by December.

• Immediate resistance is located at 2.0477(SMA20), any close above will push the pair towards 2.0597(50%fib).

• Immediate support is seen at 2.0439(38.2%fib) and break below could take the pair towards 2.0250(23.6%fib).

Recommendation: Good to sell around 2.0550 with stop loss of 2.0650 and target price of 2.0450