• GBP/AUD strengthened on Thursday following the release of stronger-than-expected UK GDP data that came in stronger than economists had expected.
• UK GDP increased by 0.2% in March, surpassing the forecast of no growth (0.0%). For the first quarter, the economy expanded by 0.7%, slightly ahead of the expected 0.6% growth.
• The stronger GDP growth might impact the Bank of England’s interest rate strategy. Although the Bank recently cut rates, the solid Q1 results may prompt policymakers to be more cautious about additional rate cut.
• The Bank of England cut rates by 0.25% last week, leading traders to reduce their expectations for rate cuts in 2025. Money markets now anticipate 44 basis points of easing by December, down from 70 basis points projected just a week ago.
• Immediate resistance is located at 2.0977(38.2% fib), any close above will push the pair towards 2.1000(Psychological level).
• Strong support is seen at 2.0553(61.8% fib) and break below could take the pair towards 2.0445 (Lower BB)
Recommendation: Good to buy around 2.0750, with stop loss of 2.0650 and target price of 2.0940
