FxWirePro: GBP/AUD momentum strongly bearish despite pause in losses

• GBP/AUD edged lower on Thursday as rising concerns over the UK’s economic health weighed on sterling.

• Worries surrounding stagnant growth, persistent inflation, and uncertainty over future monetary policy dragged on market sentiment, leading to a slight decline in sterling against the Aussie dollar.

• The BoE may cut interest rates next week, but policymakers remain divided as inflation rises and the job market weakens.

• The MPC's vote split three ways in May when the BoE cut its benchmark rate by 25 basis points. A similar outcome is expected on August 7, with most analysts predicting another quarter-point cut, while some advocate for a larger half-point move and others prefer no change.

• Technical signals are bearish as RSI is falling, daily momentum studies  5 ,9 DMA’s are trending lower. 

• Resistance stands at 2.0606(SMA 20), 2.0697(38.2%fib), and 2.0749(July 17th high).

•   Key   support seen at 2.0503 (Daily low), 2.0412 (23.6%fib), and 2.0309 (Lower BB).

Recommendation: Good to sell around 2.0610, with stop loss of 2.0700 and target price of 2.0530