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FxWirePro: GBP/AUD reverses recent rally, bias back to downside

• GBP/ AUD reversed course on Wednesday as sterling was negatively impacted after Britain's new finance minister unveils first budget. • British finance minister Rachel Reeves on Wednesday said she would raise taxes by 4…

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FxWirePro: GBP/AUD reverses recent rally, bias back to downside
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• GBP/ AUD reversed course  on Wednesday  as sterling was  negatively impacted after Britain's new finance minister unveils first budget.

• British finance minister Rachel Reeves on Wednesday said she would raise taxes by 40 billion pounds a year ($52 billion) in her first budget, as she accused the previously ruling Conservative Party of leaving public services broken.

•Reeves also forecast Britain's budget deficit would come to 26.2 billion pounds in the 2025/26 financial year, citing new projections from the Office for Budget Responsibility.

• GBP/ AUD drops swiftly from 1.9888  Wednesday high. Break lower  at  50%fib runs risk rowards  1.9600 level.  

• Immediate resistance is located at 1.9741 (38.2%fib), any close above will push the pair towards 1.9881 (23.6%fib).

• Immediate support is seen at 1.9637(50%fib) and break below could take the pair towards 1.9617 (SMA 9).

Recommendation: Good to sell around 1.9720 with stop loss of 1.9860, and target price of 1.9620

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Major Pair Currency Score: AUDUSD Bearish

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