• 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
