• GBP/AUD erased earlier gains on Thursday as UK GDP data confirmed UK economy went into recession last year.
• Gross domestic product shrank by 0.1% in the third quarter and by 0.3% in the fourth, unchanged from preliminary estimates, the Office for National Statistics (ONS) said on Thursday.
• The GDP's sluggish outset this year suggests that the overall economic growth for 2024 is poised to be modest, likely falling below the 1% mark for the calendar year.
• GBP/AUD fell to 1.9364, keeping near recent trend lows and anchored in its recent 1.9458-1.9290 range .
• Technical signals are bullish as RSI is at 51 bullish, daily 5, 10 & 11 MAs trending up .
• Immediate resistance is located at 1.9413 ( March 8th high), any close above will push the pair towards 1.9458 (23.6%fib)
• Support is seen at 1.9290 (38.2%fib) and break below could take the pair towards 1.9217(Lower BB)
Recommendation: Good to buy around 1.9340, with stop loss of 1.9240 and target price of 1.9430
