FxWirePro: GBP/AUD falls on weak UK retail sales data, plunge to test a key fibo grows

• GBP/AUD slipped lower on Friday  as pound attracted sellers after much softer than expected retail sales data boosted expectations of an interest rate cut next month.

• British retail sales fell unexpectedly in December, according to data that raised the risk of an economic contraction in the fourth quarter.

• Traders see an 82% chance of a 25-basis-point rate cut by the Bank of England (BoE) in February, and are pricing in 66 basis points in cuts during 2025,
 
• Technical are bearish, daily RSI is  down at 48, daily momentum studies  9 and 10 DMAs are trending south. 

• Immediate resistance is located at 1.9778(38.2%fib ), any close above will push the pair towards 1.9924 (50%fib).

• Strong support is seen at 1.9571(23.6%fib ), and break below could take the pair towards 1.9505(Lower BB).

Recommendation: Good to sell  around 1.9680 with stop loss of 1.9750 and target price of 1.9600