• GBP/AUD initially dipped but recovered some ground as investors digested UK GDP data
• Britain’s economy stagnated in July, with zero growth recorded as a sharp decline in factory output weighed on activity.
• The data aligns with expectations for a sluggish start to the second half of 2025, but marks a setback for the government as it prepares its November budget.
• Finance Minister Rachel Reeves said Thursday the economy “isn’t broken, but feels stuck,” as she announced steps to simplify parts of the tax system.
• Technicals are favouring bearish sentiment as RSI is at 30 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 2.0494 (Sep 11th high), any close above will push the pair towards 2.0589(50%fib)
• Strong support is seen at 2.0359 (38.2%fib)and break below could take the pair towards 2.0259(Lower BB).
Recommendation: Good to sell around 2.0400 with stop loss of 2.0460 and target price of 2.0300
