FxWirePro: GBP/AUD edges lower, vulnerable to more downside

• GBP/AUD edged lower on Monday as the Australian dollar strengthened amid rising expectations of further tightening by the Reserve Bank of Australia.

•   Investors will closely watch remarks from RBA policymakers on Tuesday, with Hunter, Governor Michele Bullock and Monetary Policy Board member Ross scheduled to speak. Their comments could offer further insight into the central bank’s policy outlook.

• Markets are increasingly pricing in a 25-basis-point rate hike by the Reserve Bank of Australia on September 29, with futures indicating the move is nearly fully priced in.

 • Australia’s employment data, due Thursday, will be an important focus for the Australian dollar. Evidence of a resilient labor market could strengthen expectations that the RBA may maintain a tighter policy stance, potentially supporting the currency...

• Immediate resistance is located at 1.8836(SMA20), any close above will push the pair towards 1.8962(SMA 20).

• Immediate support is seen at 1.8778(38.2%fib) and break below could take the pair towards 1.8683(Lower BB ).

Recommendation: Good to sell around 1.8800, with stop loss of 1.8900 and target price of 1.8710