• GBP/AUD traded flat on Wednesday as investors awaited UK employment data on Thursday for clues on BoE’s rate trajectory.
• All eyes are on Thursday’s employment and wage data, as markets look for clues on the Bank of England’s next move on interest rates.
• The data will be closely scrutinized for clues on how aggressively the Bank of England may need to respond in the coming months.
• The Bank of England is widely expected to cut interest rates by 25 basis points in August, as recent economic data signals slowing domestic growth and a weakening labour market.
• 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 2.0652(Jul 11th high), any close above will push the pair towards 2.1000 (Psychological level).
• Strong support is seen at 2.0454(50% fib) and break below could take the pair towards 2.0347(Lower BB).
Recommendation: Good to sell around 2.0570, with stop loss of 2.0650 and target price of 2.0480
