• GBP/AUD softened on Friday after disappointing UK November retail sales data weighed on the pound.
• British retail sales fell last month, official data showed on Friday, adding to signs that the wider economy was losing momentum ahead of finance minister Rachel Reeves’ end-of-month budget..
• Sales volumes fell 0.1% in November from October, as Black Friday promotions provided a smaller boost than in previous years.
• Recent updates from UK retailers have pointed to challenging trading conditions ahead of Christmas, with budget clarity doing little to improve sentiment.
•The BoE cut interest rates on Thursday after a narrow vote, while signalling that its already cautious pace of easing could slow further.
• Immediate resistance is located at 2.0303(50%fib), any close above will push the pair towards 2.0365(Higher BB).
• Immediate support is seen at 2.0160 (38.2%fib).) and break below could take the pair towards 1.9992(Lower BB).
Recommendation: Good to buy around 2.0210 with stop loss of 2.0150 and target price of 2.0300
