FxWirePro: GBP/AUD slips as UK fiscal risks eclipse strong retail sales data

• GBP/AUD  declined on Friday as sterling was hit after report showed Britain’s borrowing had overshot official forecasts, weighing on sentiment amid fiscal uncertainty.

• Public sector borrowing from April to August totaled £83.8 billion ($113.4 billion), official data showed Friday  £11.4 billion above the Office for Budget Responsibility’s earlier forecast.

• The surge adds to the challenges facing Finance Minister Rachel Reeves ahead of her November budget, where she was already expected to unveil tax hikes to meet fiscal rules and maintain market confidence.

• Meanwhile ,data   showed retail sales rose more than expected in August, boosted by sunny weather, though July’s growth was revised lower.

• Technical are bearish, daily RSI is   at 39, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 2.0558 (SMA 20), any close above will push the pair towards 2.0722 (50% fib).

• Strong support is seen at 2.0323 (61.8% fib) and break below could take the pair towards 2.0245(Lower BB).

Recommendation: Good to sell on  around 2.0450, with stop loss of 2.0560  and target price of 2.0360