• GBP/AUD edged higher on Tuesday as awaited the Federal Reserve's next policy decision on Wednesday.
• The Federal Reserve is widely expected to keep its benchmark interest rate steady when it concludes its two-day policy meeting on Wednesday.
• Despite slight recovery, the GBP/AUD pair remains under pressure from lingering UK fiscal concerns.
• Meanwhile, markets are pricing in an 88% chance of a 25 bp BoE cut on August 7, with 47 bp of easing expected by the December 18 meeting.
• Technical signals remain bearish, with RSI at 40 and the 5 , 9 , and 11 day moving averages all trending lower.
• Immediate resistance is located at 2.0625(SMA 20), any close above will push the pair towards 2.0687 (38.2% fib).
• Strong support is seen at 2.0413(23.6% fib) and break below could take the pair towards 2.0286(Lower BB).
Recommendation: Good to sell around 2.0510, with stop loss of 2.0600 and target price of 2.0430
