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

•GBP/AUD initially dipped as the Australian dollar firmed on rate-hike expectations and strong services PMI data..

• The Reserve Bank raised its cash rate for the first time in two years in its February meeting amid stronger economic growth and a persistent inflation outlook.

• Traders priced in roughly 40 basis points of further tightening this year after the central bank said inflation would not return to the midpoint of its 2%–3% target range by mid-2028.

• Australia’s services activity jumped to its strongest level in nearly four years in January, though softer business confidence signaled underlying caution.

• Australia’s Services PMI surged to 56.3 in January from 51.1 in December, signaling the sector’s strongest growth in almost four years.

• Immediate resistance is located at 1.9665 (38.2%fib), any close above will push the pair towards 1.9810 (SMA 20).

• Immediate support is seen at 1.9393(23.6%fib) and break below could take the pair towards 1.9311 (Lower BB).

Recommendation: Good to sell around  1.9530, with stop loss of 1.9600 and target price of   1.9450