FxWirePro: GBP/AUD extends drop, faces 38.2%fib support

• GBP/AUD extended fall on Friday as the Australian dollar    continues to benefit from hotter than expected Australian inflation data.

• A hot inflation reading has sealed the case that the Reserve Bank of Australia's current policy easing is now over after three rate cuts, with some economists predicting that the next move could be up rather than down.

• Looking ahead, the next major domestic catalyst will be Australia’s Q3 GDP release due on December 3, followed by the October trade balance data on December 4.

• Both releases will be closely watched for confirmation that economic momentum remains strong enough to justify the market’s increasingly hawkish reassessment of the RBA outlook.

• Immediate resistance is located at 2.0389(SMA 20), any close above will push the pair towards 2.0429 (50%fib).

• Immediate support is seen at 2.0232 (38.2%fib) and break below could take the pair towards 2.0208 (5DMA).

• Recommendation: Good to sell around 2.0220  with stop loss of 2.0270 and target price of 2.0150