• GBP/AUD rose on Wednesday as pound was supported by increased risk appetite across the board.
• The OECD upgraded its outlook for the UK economy, noting it is likely to outperform earlier expectations, while signalling that the BoE could proceed more cautiously with further rate cuts..
• The swaps market had priced in a 90% chance of the BoE cutting rates 25 bps at the December 18 meeting.
• On the data front,The S&P Global UK Services PMI eased to 51.3 in November from October’s 52.3, but came in stronger than the earlier flash estimate of 50.5.
• Immediate resistance is located at 2.0352(50%fib), any close above will push the pair towards 2.0402(Higher BB).
• Immediate support is seen at 2.0177(38.2%fib) and break below could take the pair towards 2.0042(Lower BB).
Recommendation: Good to sell around 2.0230 with stop loss of 2.0270 and target price of 2.0060
