• GBP/ AUD traded choppily on Friday as investors digested U.S. inflation data,and UK GDP reading.
• U.S. consumer prices increased 0.4% in August following a 0.1% rise in July, Labor Department data showed. Core CPI advanced 2.4% from a year earlier, compared with a 2.5% increase in July.
• British GDP grew 1.6% year-on-year in July, beating economists' forecast of 1.2% and marking the fastest annual growth since February 2025. The data provided some reassurance about the resilience of the UK economy and helped underpin a more constructive tone toward the pound.
• The pair's failure to strengthen despite the stronger-than-expected UK GDP data suggests the path of least resistance may remain firm for the pair.
• Immediate resistance is located at 1.8908(38.2%fib), any close above will push the pair towards 1.8931(SMA 20).
• Immediate support is seen at 1.8729(38.2%fib) and break below could take the pair towards 1.8668(Lower BB ).
Recommendation: Good to sell around 1.8900, with stop loss of 1.8970 and target price of 1.8860
