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FxWirePro:GBP/AUD buoyed by upward revision to UK services PMI

• GBP/AUD gained strength on Wednesday after a survey showed that the UK's services sector grew at its quickest pace since April last month.. • A survey revealed that UK services activity expanded last month at its quick…

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FxWirePro:GBP/AUD buoyed by upward revision to UK services PMI
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• GBP/AUD gained strength on Wednesday after a  survey showed that   the UK's services sector grew at its quickest pace since April last month..

• A survey revealed that UK services activity expanded last month at its quickest rate since April, with easing price pressures indicating a more favorable inflation outlook and a stabilizing economy following July's election.

 • Last month, the BoE reduced borrowing costs for the first time since March 2020, lowering the rate to 5.0% from a 16-year high of 5.25%. Traders are anticipating at least one additional rate cut from the BoE before the year ends.

• Technically, the moving averages are indicating a up trend, while the Relative Strength Index (RSI) is s bullish at 57.

• Immediate resistance is located at 1.9621(38.2%fib), any close above will push the pair towards 1.9704(Aug 1st high).

• Immediate support is seen at 1.9480(50%fib) and break below could take the pair towards 1.9445 (Aug 27th low).

Recommendation: Good to buy around 1.9540, with stop loss of 1.9450 and target price of 1.9620

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