FxWirePro: GBP/AUD dips early but recovers after U.S. PCE Data

• GBP/AUD initially fell on Friday   , but later recovered as investors digested the release of U.S. Personal Consumption Expenditures (PCE) inflation data.

•The key inflation reading provided fresh signals on the U.S. economic outlook and potential Federal Reserve policy moves .

• The U.S. PCE Price Index increased 0.2% in July, in line with expectations, down from June’s unrevised 0.3% gain.

• Sterling remains sensitive to UK fiscal concerns, keeping the pair on edge despite stabilizing U.S. inflation data.

• Market focus next week shifts to key U.S. employment releases including JOLTS, ADP, and NFP for potential clues on Fed policy direction.

• Immediate resistance is located at 2.0724(SMA 20), any close above will push the pair towards 2.0975(38.2%fib).

• Immediate support is seen at 2.0613 (50%fib) and break below could take the pair towards 2.0495 (Lower BB).

Recommendation: Good to buy around 2.2630 with stop loss of 2.2600  and target price of 2.2760