• GBP/ AUD extended gains on Wednesday after data showed the UK economy grew faster than previously expected in the second quarter. .
• The UK economy expanded at a stronger pace than initially thought in the second quarter, maintaining its status as the fastest-growing G7 economy during the first half of 2026 ahead of October’s budget.
• The UK economy grew by 0.5% between April and June, according to data released by the Office for National Statistics on Wednesday..
•The reading was slightly stronger than a preliminary estimate for 0.4% growth in gross domestic product. Economists polled by Reuters had expected the 0.4% rise to be confirmed.
• Traders are pricing in around 33 basis points of monetary tightening from the BoE by year-end and more than 100 basis points by the end of 2027
• Immediate resistance is located at 1.9185(38.2%fib), any close above will push the pair towards 1.9381(23.6%fib).
• Immediate support is seen at 1.9026(50%fib) and break below could take the pair towards 1.8862(61.8%fib).
Recommendation: Good to buy around 1.9060, with stop loss of 1.8950 and target price of 1.9120
