FxWirePro: GBP/AUD drifts lower, could be on verge of bigger drop

• GBP/AUD edged lower  as better-than-expected February GDP data from the UK failed to support  pound

• Britain’s economy grew strongly in February, suggesting it was in better shape before the Iran war than many economists had expected, official data showed Thursday.

• Gross Domestic Product rose 0.5% month-on-month in February, marking the strongest growth since January 2024, according to the Office for National Statistics..

• The figures are likely to provide some relief to Finance Minister Rachel Reeves, though economists warn that Britain remains vulnerable to spillovers from the Middle East conflict..

• Separate ONS data showed Britain’s trade deficit, excluding volatile precious metals, widened to £5.627 billion ($7.62 billion) in February, the highest since November 2024.

•Money market futures imply almost two quarter-point rate increases in 2026. Before ​the war ⁠began, investors had expected the BoE to cut rates twice this year..

• Immediate resistance is located at 1.9115 (SMA 20), any close above will push the pair towards 1.9148(38.2%fib).

• Strong support is seen at 1.8805 (Lower BB), and break below could take the pair towards 1.8680(Lower BB).

Recommendation: Good to sell  on  around 1.9000 with stop loss of 1.9120 and target price of 1.8800