• GBP/AUD dipped on Tuesday as weak UK labour market data boosted hopes for Bank of England rate cuts.
• Official data show that UK unemployment rose to 5% in the three months to September, indicating a weakening labor market.
• The unemployment rate rose more than expected, exceeding the 4.9% predicted by most analysts ahead of the November 26 Budget.
• The ONS reported that pay growth, excluding bonuses, eased slightly to 4.6% in the three months to September compared with the previous year.
• Bank of England rate cuts implied by futures rose to 65 basis points by year-end 2026 on Tuesday, from 55 bps a day earlier.
• Immediate resistance is located at 2.0281(Nov 11th high), any close above will push the pair towards 2.0304 (38.2%fib).
• Immediate support is seen at 2.0017(23.6%fib) and break below could take the pair towards 1.9844 (Lower BB).
Recommendation: Good to sell around 2.0150 with stop loss of 2.0240 and target price of 2.020
