FxWirePro: GBP/AUD rebounds, critical resistance lies ahead

• GBP/AUD rebounded srongly on Thursday as investors positioned for Britain's much-discussed upcoming budget.  

• Britain's annual autumn budget, which will be published on November 26, is one of the most significant events of the year for investors.

• British finance minister Rachel Reeves is expected to raise tens of billions of pounds to keep her fiscal targets on track in the upcoming annual budget, while last week’s media reports suggesting she would avoid tax hikes unsettled British markets.

•British government borrowing costs spiked last week after reports indicated that Reeves, in a notable policy reversal, would no longer raise income tax in her upcoming budget, following improved fiscal forecasts.

• Immediate resistance is located at 2.0392(Higher BB), any close above will push the pair towards 2.0471(50%fib).

• Immediate support is seen at 2.0243(38.2%fib) and break below could take the pair towards 2.0171(SMA 20).

Recommendation: Good to buy 2.0250 with stop loss of 2.0160  and target price of 2.0380