• GBP / AUD strengthened on Wednesday as traders positioned themselves ahead of a key UK economic release.
• The upcoming Gross Domestic Product (GDP) report, scheduled for Thursday, is expected to shed light on the health of the UK economy for both March and the first quarter of 2025.
• The data will serve as a key indicator of whether the UK economy is gaining momentum, stagnating, or facing renewed headwinds, and will likely influence market sentiment and policy expectations moving forward.
• Meanwhile, Bank of England's Catherine Mann backed holding rates steady, citing stronger-than-expected resilience in the UK labor market.
• Immediate resistance is located at 2.0840(50% fib), any close above will push the pair towards 2.1000(Psychological level).
• Strong support is seen at 2.0520(61.8% fib) and break below could take the pair towards 2.0445 (Lower BB)
Recommendation: Good to buy around 2.0600, with stop loss of 2.0520 and target price of 2.0680
