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FxWirePro: GBP/AUD stalls after strong rally as buyers hesitate

• GBP/AUD dipped on Friday  as traders evaluated the Bank of England's next move.

• Softer wage growth figures and a surprise uptick in inflation have clouded the rate path, prompting markets to price in a higher likelihood of an interest rate cut at the BoE’s upcoming meeting.

• Focus remains on the Bank of England’s policy path, with markets now pricing in an 80% chance of a 25 basis point rate cut in August. However, expectations for further easing in September are currently low.

•  Fiscal concerns in the UK persist, with investors remaining cautious amid potential budgetary pressures and expectations of slower economic growth in H2 2025.

•  Immediate resistance is located at 2.0754(July 17th high), any close above will push the pair towards 2.0815 (38.2% fib).

• Strong support is seen at 2.0492(50% fib) and break below could take the pair towards 2.0358(Lower BB).

Recommendation: Good to buy   around 2.0580, with stop loss of 2.0500 and target price of 2.0660
 

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