FxWirePro: GBP/AUD edges higher but bulls lack punch

• GBP/AUD edged higher on Monday as the pound gained ground as investors turning their attention to the UK’s preliminary Q2 GDP figures due later this week.

• The UK economy is expected to grow 0.4% in the second quarter, slowing from 0.6% in the previous quarter, highlighting a moderation in economic momentum..

• On a monthly basis, UK GDP is expected to contract 0.1% in June, reversing the 0.1% growth recorded in May.

•Meanwhile, Britain’s labour market showed signs of stabilisation in July, with recruiters halting cuts to permanent staff while starting salaries rose at a faster pace.

• The monthly REC/KPMG index of permanent job placements rose to 50.0 in July from 49.1, ending a 45-month decline.

• Immediate resistance is located at 1.9155(23.6%fib), any close above will push the pair towards 1.9198(Higher BB).

• Immediate support is seen at 1.9201(38.2%fib) and break below could take the pair towards 1.9086(50%fib).

Recommendation: Good to sell around 1.9160, with stop loss of 1.9220 and target price of 1.9100