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FxWirePro: GBP/AUD rebounds, critical resistance lies ahead

• GBP/AUD rebounded on Thursday as after stronger-than-expected UK employment data eased fears of a weakening labour market.

• The number of employees on company payrolls fell by a provisional 41,000 in June, following a revised 25,000 decline in May, pointing to a continued softening in UK labour demand.

• The Bank of England is closely monitoring wage growth and employment figures for indications of underlying domestic inflationary pressures, particularly after Wednesday’s data revealed headline CPI rose to 3.6% in June — its highest level since January 2024.

• Combined with Wednesday’s hotter-than-expected inflation figures, the latest UK jobs data puts the Bank of England in a difficult position—juggling persistent inflation and signs of a cooling labour market.

•  Immediate resistance is located at 2.0798(SMA20), any close above will push the pair towards 2.908 (38.2%fib).

• Strong support is seen at 2.0421(50%fib) and break below could take the pair towards 2.0376(Lower BB).

Recommendation: Good to buy around 2.0680 with stop loss of 2.0600 and target price of 2.0800
 

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