FxWirePro: GBP/AUD edges higher but bearish outlook persists

• GBP/AUD inched higher on Monday  but lacklustre PMI results and fiscal uncertainties in the UK capped gains.

• Reeves is expected to raise taxes again, following last year’s employer-focused hikes, amid weak growth and rising borrowing costs straining UK public finances.  

•   The move comes as Britain faces a subdued economic growth outlook and rising borrowing costs, which are placing additional pressure on public finances.

• On the data front, the S&P Global/CIPS manufacturing PMI slipped to 47.0 in August from July’s six-month high of 48.0, below the preliminary 47.3 reading. This marks the 11th consecutive month of contraction, staying below the neutral 50 level

• Technical signals remain bearish, with RSI at 45 and the 5 , 9 , and 11 day moving averages all trending lower.

•  Immediate resistance is located at 2.0736(SMA 20), any close above will push the pair towards 2.0886 (50% fib).

• Strong support is seen at 2.0607 (38.2% fib) and break below could take the pair towards 2.0480(Lower BB).

Recommendation: Good to sell  around 2.0700, with stop loss of 2.0760 and target price of 2.0610