• GBP/AUD eased slightly on Tuesday as markets absorbed BoE Governor Bailey’s comments and the UK welfare vote.
• British Prime Minister Keir Starmer secured a vote on his welfare plans on Tuesday but faced his largest parliamentary rebellion yet and had to retreat on key elements of the proposal.
• Bank of England Governor Andrew Bailey on Tuesday noted a weakening UK labour market and said global economic uncertainty has clearly dampened growth and investment outlooks.
• In June, the Bank of England kept interest rates unchanged in a split decision, citing inflation risks from a softening labour market and rising energy prices tied to Middle East tensions..
•Traders anticipate that the BoE will lower borrowing costs by at least 25 basis points in September.
• Technical indicators remain firmly bullish, with RSI at 51 and daily momentum studies (5, 11, and 14 DMAs) all trending upward.
• Immediate resistance is located at 2.1047(Higher BB), any close above will push the pair towards 2.1114(38.2%fib)
• Support is seen at 2.2839(50%fib) and break below could take the pair towards 2.0661(Lower BB).
Recommendation: Good to buy around 2.0880 with stop loss of 2.0800 and target price of 2.1050
