FxWirePro: GBP/AUD downtrend extends, eyes 1.8800 level

• GBP/AUD dipped  on Wednesday as   Australian dollar firmed following  upbeat Australian GDP data  

• Australia’s economy grew at its fastest annual pace in nearly three years in Q4, data showed on Wednesday, boosting inflation concerns and increasing expectations for higher interest rates to curb demand..

• Data from the Australian Bureau of Statistics showed GDP grew 0.8% in Q4, above the upwardly revised 0.5% in the previous quarter.

•  Annual growth accelerated to 2.6%, the fastest pace since early 2023, when post-pandemic stimulus was still supporting the economy, according to the Australian Bureau of Statistics.

•    The upbeat data underscored the economy's strength in the final quarter of the year, bumping up against its capacity constraints. 

•  Inflation picked up to 3.8% in January and the unemployment rate stayed at a ⁠historically low level of 4.1%, though the RBA's latest hike in February is likely to temper demand.

•  mmediate resistance is located at 1.9109(SMA 20), any close above will push the pair towards 1.92706(38.2%fib)

•  Support is seen at 1.8818(Daily low) and break below could take the pair towards 1.8738(Lower BB).

Recommendation: Good to sell  around 1.8900 with stop loss of 1.8970 and target price of 1.8800