• GBP/ AUD slipped lower on Friday after President Trump announced a delay in some auto tariffs, easing trade tensions and boosting market sentiment.
• Britain's economy unexpectedly contracted in January, with the gross domestic product falling 0.1% versus expectations of a 0.1% monthly expansion.
• Manufacturing output dropped 1.1% in January, led by poor performance in the metals and pharmaceutical sectors, while the broader industrial sector was also impacted by a decline in oil and gas extraction.
•Construction output fell 0.2%, with the ONS attributing the decline to stormy weather affecting construction activity, according to anecdotal evidence from companies.
• Technical signals are bullish as RSI is at 62,while moving averages and MACD are trending higher.
• Immediate resistance is located at 2.0612(23.6%fib), any close above will push the pair towards 2.0740(Higher BB).
• Immediate support is seen at 2.0413( (38.2%fib) and break below could take the pair towards 2.0259(50%fib).
Recommendation: Good to buy around 2.0400, with stop loss of 2.0250 and target price of 2.0550
