FxWirePro: GBP/AUD dips ahead of key UK inflation data

• GBP/AUD dipped on Monday  as investors turned cautious ahead of the upcoming U.K. inflation data, which could provide fresh clues about the Bank of England’s policy outlook.

• U.K. inflation is expected to have risen to 4%, with markets watching closely for signs of persistent price pressures that could influence the Bank of England’s monetary policy outlook.

•An annual inflation rate of 4% for the 12 months to September would only strengthen the case for the Bank of England to continue its cautious approach to monetary easing.

• The data will add to the challenges facing Chancellor Rachel Reeves as she prepares to deliver the delayed Autumn Budget on November 26, where she is expected to outline measures to support growth while maintaining fiscal discipline.

• Immediate resistance is located at 2.0681(Daily high), any close above will push the pair towards 2.0850(50%fib).

• Immediate support is seen at 2.0557(23.6%fib) and break below could take the pair towards 2.0461(SMA 20).

Recommendation: Good to sell around 2.0600 with stop loss of 2.0700 and target price of 2.0500