• GBP/AUD fell on Wednesday as fiscal concerns and growing expectations of a Bank of England rate cut weighed heavily on the pound..
• With inflation easing back toward the BoE’s 2% target and signs that domestic price pressures are moderating, markets are beginning to anticipate a potential policy pivot.
• As the UK economy struggles to gain momentum, investors are becoming increasingly uneasy about the government’s financing capacity a concern that may prompt capital flight and deepen the pound’s weakness.
. Markets currently price in only about a 40% probability of a Bank of England rate cut at the upcoming meeting, though odds rise to around 70% for a move in November or December.
• Immediate resistance is located at 2.0185(Daily high ), any close above will push the pair towards 2.0312(38.2%fib).
• Immediate support is seen at 2.0041(23.6%fib) and break below could take the pair towards 1.9980(Lower BB).
Recommendation: Good to sell around 2.0100 with stop loss of 2.0180 and target price of 2.0000
