• GBP/AUD dipped on Wednesday as weak U.S. economic data triggered a shift towards risk-off sentiment.
• April’s ADP private payroll report showed job gains of just 62,000 well below expectations while, first-quarter GDP contracted by 0.3%, marking the first economic shrinkage in three years.
• This combination of underwhelming data raised concerns over U.S. growth, prompting investors to move into the safety of the U.S. dollar.
•This shift drove the GBP/AUD pair lower as traders reassessed global growth prospects and braced for potential spillovers from U.S. trade policies and tightening financial conditions.
• Immediate resistance is located at 2.1000 (Psychological level), any close above will push the pair towards 2.1071(38.2%fib BB).
• Immediate support is seen at 2.0752 (50%fib) and break below could take the pair towards 2.0681 (April 23rd low).
Recommendation: Good to buy around 2.0750, with stop loss of 2.0690 and target price of 2.0900
