FxWirePro: GBP/AUD slides amid fiscal concerns as gilt yields probe fresh highs

• GBP/AUD slipped lower    on Tuesday  as fiscal concerns intensified as UK gilt yields rose, with the 30-year yield hitting its highest level since 1998.

• Rising UK gilt yields intensified worries over public finances. The 30-year gilt yield reached its highest level since 1998, highlighting investor concern about the sustainability of UK debt .

• Prime Minister Keir Starmer reshuffled his economic team, moving key advisers into Downing Street. Analysts suggest these changes could signal more active fiscal management but also add uncertainty about the government’s handling of economic challenges.  

• Rising gilt yields, fiscal uncertainty, and political developments are keeping the pound under pressure.

• Meanwhile, traders will focus on U.S. economic data later this week, including JOLTS job openings and durable goods orders on September 3, followed by UK PMIs on September 4. U.S. nonfarm payrolls on September 5 will be key

•  Immediate resistance is located at 2.0609(50%fib), any close above will push the pair towards 2.0733 (20 SMA).

•  Strong support is seen at 2.0444(Lower BB) and break below could take the pair towards 2.0455(61.8%fib).

Recommendation: Good to sell  around 2.0540 with stop loss of 2.0630 and target price of 2.0460