FxWirePro: GBP/AUD extends drop, faces 23.6%fib support

• GBP/AUD declined on Tuesday as   political crisis in United Kingdom weighed on sterling 

• British Prime Minister Keir Starmer’s Chief of Staff, Morgan McSweeney, resigned on Sunday, accepting responsibility for recommending Peter Mandelson as U.S. ambassador despite his connections to Jeffrey Epstein.

•  Polls show Starmer’s popularity has slumped after several U-turns, with some in his party questioning his judgment and leadership future.

• The Bank of England held rates steady last week in a narrow 5–4 vote and said borrowing costs could fall if inflation keeps easing.

•  Data this week, including January retail sales and December GDP, could help shape monetary policy expectations. 

• Immediate resistance is located at 1.9448(38.2%fib ), any close above will push the pair towards 1.9622(50%fib).

•  Strong support is seen at 1.9252 (23.6%fib ), and break below could take the pair towards 1.9195(Lower BB).

Recommendation: Good to sell on  around 1.9280 with stop loss of 1.9390 and target price of 1.9200