• GBP/AUD dipped on Friday as renewed U.S.-China trade tensions and a wave of risk-off sentiment kept investors on edge.
•The latest escalation in trade frictions between Washington and Beijing sparked concerns over global growth, prompting investors to reduce exposure to risk-sensitive asset
• The British economy, meanwhile, managed to eke out modest growth in August, providing some relief to Finance Minister Rachel Reeves ahead of her budget due in late November..
• Official data released on Thursday showed Britain’s economy returned to growth in August offering a sign of resilience after months of stagnation.
• Traders are pricing in a 44% chance of a 25 basis-point rate cut by the Bank of England in December, with full expectations for easing by March 2026.
• Immediate resistance is located at 2.0923(38.2%fib), any close above will push the pair towards 2.1000(Psychological level).
• Immediate support is seen at 2.0616(50%fib) and break below could take the pair towards 2.0478(SMA 20).
Recommendation: Good to buy around 2.0660 with stop loss of 2.0550 and target price of 2.0900
