• GBP/AUD edged higher on Wednesday as traders assessed cooling UK inflation and growing fiscal uncertainty .
• UK consumer prices increased 2.6% year-on-year in June, easing from 2.8% in May and marking the slowest annual rise since March 2025.
• Britain's new Prime Minister Andy Burnham ruled out making unfunded promises on the tax-free personal allowance, saying any tax changes would be decided at the government's next fiscal update in the coming months.
• Data released on Tuesday highlighted the constraints facing the new government as it considers additional spending plans.
•The UK's day-to-day spending deficit widened to £42 billion in the first quarter of the tax year, exceeding budget expectations by £1.3 billion as the government works toward balancing spending with tax income by the end of the decade.
• Immediate resistance is located at 1.9198(38.2%fib), any close above will push the pair towards 1.9236(SMA 20).
• Immediate support is seen at 1.9103 (Lower BB) and break below could take the pair towards 1.9068(50%fib).
Recommendation: Good to sell around 1.9140, with stop loss of 1.9180 and target price of 1.9090
