FxWirePro: GBP/AUD struggles despite early gains on UK data

• GBP/AUD initially gained but gave up ground as investors reacted to UK labor market data which came in largely in line with forecasts, prompting only a muted reaction.

• A report from the Office for National Statistics on Tuesday showed payrolls declined for the seventh straight month, while private sector wage growth eased to 4.7% in the May–July period, compared with 4.8% in the previous three months.

• The data indicate that Britain’s labour market is cooling, potentially easing some Bank of England concerns about persistent inflation, though it is unlikely to significantly influence Thursday’s rate decision..

• Technical are bearish , daily RSI is bearish  at 35, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 2.0499 (Sep 16th high), any close above will push the pair towards 2.0572(38.2% fib).

• Strong support is seen at 2.0327 (23.6% fib) and break below could take the pair towards 2.0291(Lower BB).

Recommendation: Good to sell  on  around 2.0450 with stop loss of 2.0550 and target price of 2.0350