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

•  GBP/AUD softened on Friday  as investors assessed economic data and added to bets on Bank of England interest rate cuts.

• U.K. retail sales surged 1.8% in January, following December’s 0.4% gain, marking the fastest monthly growth since May 2024 and well above the 0.2% forecast, according to the Office for National Statistics.

• On an annual basis, U.K. retail sales growth jumped to 4.5% in January from 1.9% in December, while excluding auto fuel, growth accelerated to 5.5% from 2.5%, the Office for National Statistics reported..

• Data from S&P Global showed the U.K. Composite PMI defied expectations, rising to 53.9 in February from 53.7 in January, above the forecasted 53.4.

• mmediate resistance is located at 1.9217(38.2%fib ), any close above will push the pair towards 1.0371(50%fib).

• Strong support is seen at 1.8982(23.6%fib) and break below could take the pair towards 1.8930(Lower BB).

• Recommendation: Good to sell on  around 1.9030 with stop loss of1.9100and target price of 1.8900