FxWirePro: GBP/AUD edges higher but maintains bearish bias

• GBP/AUD edged higher on Friday as the pound gained support following the release of stronger-than-expected UK retail sales data for August.

 • UK retail sales volumes rose 0.5% month-on-month in August, beating economists’ expectations for a 0.2% decline, while annual sales volumes increased 2.4%..

• The Bank of England held interest rates at 3.75% while projecting inflation to peak above 4% in early 2025 and raising its third-quarter growth forecast after stronger July output..

• Markets see a 65% probability of a November rate hike and expect four 25-basis-point increases by 2027, although sterling is down 1.2% this week amid the Fed’s hawkish outlook.

• Immediate resistance is located at 1.8848(38.2%fib), any close above will push the pair towards 1.8884(SMA 20).

• Immediate support is seen at 1.8651 (Lower BB) and break below could take the pair towards 1.8543(23.6%fib).

Recommendation: Good to sell  around 1.8850, with stop loss of 1.9100 and target price of 1.8770