FxWirePro: GBP/AUD recovers slightly but bears are not done yet

• GBP/AUD gained some ground on Thursday  as Australian dollar weakened  after disappointing Australia’s November employment report.

• Australia saw its steepest employment decline in nine months in November, accompanied by a sharp slowdown in yearly job growth, pointing to a cooling labour market that could lessen the case for an imminent rate increase.

• Figures from the Australian Bureau of Statistics on Thursday showed that employment fell by 23,100 in November, reversing October’s strong 41,200 gain and coming in well below expectations for a 20,000 increase. Full-time positions accounted for most of the weakness, dropping by 56,500.

• Annual job growth slowed to 1.3% in November, down from 3.5% at the start of the year and trailing the country’s 2% population growth rate. 

• Immediate resistance is located at 2.0186 (SMA 20 ), any close above will push the pair towards 2.0246 (38.2%fib).

• Strong support is seen at 2.0014(23.6%fib) and break below could take the pair towards 1.9953(Lower BB).

Recommendation: Good to sell around 2.0170, with stop loss of 2.0260 and target price of 2.0000