• GBP/ AUD rebounded on Friday as stronger-than-expected U.S. jobs data lifted the pair.
• The U.S. consumer price index gained 0.1% last month after being unchanged in July. Economists polled by had forecast a dip of 0.1%.
• Non-farm payrolls increased a more-than-forecast 254k on the month, the unemployment unexpectedly fell and hourly earnings grew faster than expected.
•Odds of another supersized rate cut by the Fed in 2024 were erased after the data and markets now foresee two 25 basis point reductions by year end.
• Technical signals show the pair could gain more ground in the short-term as RSI is rising from below,while moving averages are trending higher.
• Immediate resistance is located at 1.7054( 21DMA), any close above will push the pair towards 1.7116 (38.2%fib).
• Immediate support is seen at 1.9279 (38.2%fib) and break below could take the pair towards 1.9163(23.6%fib).
Recommendation: Good to buy around 1.9250, with stop loss of 1.9196 and target price of 1.9300
