• GBP/ AUD recovered some ground as market participants remained cautious amid mixed economic and political signals.
• The United Kingdom economy recorded only marginal growth in Q4, as budget uncertainty weighed on investor confidence and dampened optimism for sterling..
• Easing political tensions are offering some near-term support to the currency, though lingering uncertainty could re-emerge and weigh on sentiment..
• Key upcoming data includes U.S. CPI on Friday, which will be critical for shaping expectations around the Federal Reserve’s rate outlook, while UK unemployment and inflation data due next week could significantly influence sterling sentiment.
•Technical are signals show the pair could lose more ground in the short-term as RSI has turned lower.
• Immediate resistance is located at 1.9467 (38.2%fib), any close above will push the pair towards 1.9600(SMA20).
• Immediate support is seen at 1.9192(Daily low) and break below could take the pair towards 1.8972(Lower BB).
Recommendation: Good to sell around 1.9320, with stop loss of 1.9400 and target price of 1.9250
