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FxWirePro:GBP/AUD loses momentum but outlook is bullish

• 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
 

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