FxWirePro : GBP/AUD downside pressure builds, key support level in focus

• GBP/AUD declined on Tuesday as   recovering commodities prices  and hawkish RBA statement boosted Australian dollar.

• The RBA noted no immediate need to change interest rates, maintaining steady rates for the past year, but emphasized the importance of staying flexible and ready to act if the economic outlook changes.

•Iron ore futures rose to a one-week high on Tuesday, fueled by a weaker dollar and restocking by Chinese steelmakers to maintain January production.

•Australia is a major exporter of commodities like iron ore, coal, and natural gas, so fluctuations in commodity prices directly impact the strength of the AUD.

• Immediate resistance is located at 1.9488 (50%fib ), any close above will push the pair towards 1.9532(SMA 5).

• Immediate support is seen at 1.9404 (38.2%fib ), break below could take the pair towards 1.9316(23.6%fib).

Recommendation: Good to sell around 1.9470 with stop loss of 1.9570 and target price of 1.9320