• GBP/AUD edged higher but gains were muted as investors remained cautious ahead of the UK consumer inflation data due Wednesday.
• All eyes are on the UK’s consumer inflation figures scheduled for Wednesday, as analysts anticipate a further rise in price pressures amid persistent cost-of-living concerns.
• A hotter-than-expected reading could reignite speculation around further tightening from the Bank of England, while a softer print may support dovish expectations.
• The data will be closely scrutinized for clues on how aggressively the Bank of England may need to respond in the coming months.
• Traders increasingly expect the Bank of England to lower interest rates by 25 basis points to 4% at its August 7 meeting, amid signs of cooling inflation..
• Technical signals remain bearish, with RSI at 38 and the 5-, 9-, and 11-day moving averages all trending lower.
• Immediate resistance is located at 2.0657(July 11th high ), any close above will push the pair towards 2.0812 (50% fib).
• Strong support is seen at 2.0471(50% fib) and break below could take the pair towards 2.0326(Lower BB).
Recommendation: Good to sell around 2.0570, with stop loss of 2.0650 and target price of 2.0480
