• GBP/AUD dipped on Monday as traders continue to digest the recent US employment report that keeps investors’ chances about an interest rate cut by the Fed..
• On the data front, UK retail sales volumes rose 0.6% in July from June, the Office for National Statistics reported Friday, beating economists’ forecast for a 0.2% increase.
• Data highlights mounting fears among businesses that Finance Minister Rachel Reeves’ upcoming November 26 budget could bring further tax rises.
• Technical signals are bearish as RSI is at 39, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 2.0676(38.2% fib), any close above will push the pair towards 2.0724 (Higher BB).
• Strong support is seen at 2.0476 (Lower BB) and break below could take the pair towards 2.0383(23.6% fib).
Recommendation: Good to sell around 2.0580 with stop loss of 2.0680 and target price of 2.0450
