FxWirePro: GBP/AUD holds steady ahead of BoE rate decision

• GBP/AUD initially dipped but recovered ground on Wednesday   as market awaited of a Bank of England rate decision later this week

• The Bank of England is widely expected to deliver its fifth interest rate cut of the current easing cycle on Thursday, lowering the benchmark rate from 4.25% to 4.00%.

• The move reflects growing concerns over weakening economic activity and softening demand. However, the decision may not be unanimous, as some members of the Monetary Policy Committee (MPC) could favor holding rates steady, citing persistent inflationary pressures.  

• Meanwhile, a survey on Wednesday showed activity in Britain's construction sector fell by the most in more than five years last month.

• S&P Global's monthly purchasing managers' index for the construction sector fell to 44.3 in July from 48.8 in June, its lowest since May 2020.

•  Immediate resistance is located at 2.0559(SMA 20), any close above will push the pair towards 2.0735 (Higher BB).

• Strong support is seen at 2.0412(61.8% fib) and break below could take the pair towards 2.0375(Lower BB).

Recommendation: Good to sell  around 2.0540 with stop loss of 2.0630 and target price of 2.0470