FxWirePro: GBP/AUD downtrend loses steam, remains on bearish path

• GBP/AUD edged higher but gains were limited as investors geared up for interest rate decisions from   Reserve Bank of Australia and the Bank of England.

• The RBA meets for the final time this year on Tuesday, and a string of strong data has effectively ruled out any cut to the 3.60% cash rate..

• After raising rates to a 12-year high of 4.35%, the RBA has cut 75 basis points this year, but hopes for another cut have faded after inflation climbed to 3.2%, above the 2%–3% target.

•Meanwhile, BoE is widely expected to reduce borrowing costs by 25 basis points to 3.75% next week, after keeping them on hold in November.

• Immediate resistance is located at 2.0202(SMA20), any close above will push the pair towards 2.0286(50%fib).

• Immediate support is seen at 2.0039(38.2%fib) and break below could take the pair towards 1.9965 (Lower BB).

Recommendation: Good to sell around 2.0130 with stop loss of 2.0250  and target price of 2.0020