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

• GBP/AUD dipped Wednesday as UK inflation data bolstered expectations for a December interest rate reduction.

•UK inflation eased in October for the first time since May, providing relief ahead of next week’s annual budget and raising expectations of a Bank of England rate cut.

•Consumer price inflation fell to 3.6% in October from September's joint 18-month high of 3.8%, as expected by the BoE and economists polled  .

•Traders are pricing in about 86% odds of a quarter-point reduction in December, according to swap markets data..

• Immediate resistance is located at 2.0236(SMA 20), any close above will push the pair towards 2.0390(38.2%fib).

• Immediate support is seen at 1.9993(23.6%fib) and break below could take the pair towards 1.9926(Lower BB).

Recommendation: Good to sells 2.0180 with stop loss of 2.0260  and target price of 2.100