• GBP/AUD initially gained but gave up some ground on Tuesday as markets digested UK labour market data figures.
• Payroll numbers, based on provisional tax office data, fell by 8,000 in July versus June. This marks the sixth straight monthly decline since February but is the smallest decrease in that period.
• Private sector basic wage growth, a key focus for the Bank of England, slowed slightly to 4.8% in the three months through June.
• Technical are bullish, daily RSI is bullish at 55, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 2.0762 (Higher BB), any close above will push the pair towards 2.0888 (50% fib).
• Strong support is seen at 2.0582 (61.8% fib) and break below could take the pair towards 2.0424 (Lower BB).
Recommendation: Good to buy on around 2.0640, with stop loss of 2.0500 and target price of 2.0750
