FxWirePro: GBP/AUD firms slightly, but downward resumption looks likely

• GBP/AUD gained modestly on Wednesday as market participants assessed the latest geopolitical developments.

• Iranian Foreign Minister Abbas Araqchi communicated with U.S. envoys through mediators on the sidelines of the UN General Assembly in New York

• The S&P Global UK Services PMI fell to 51.7 in September from 52.5 in August, hitting a three-month low, preliminary data showed. Economists polled by Reuters had expected a reading of 52.0.

• Money markets are pricing UK interest rates at around 4.75% in a year, roughly one percentage point above the current 3.75% rate, implying four quarter-point hikes over the period.

  • The UK Autumn Budget next month remains a key fiscal risk for Prime Minister Burnham and could add to market uncertainty..

• Immediate resistance is located at 1.8830(SMA 20), any close above will push the pair towards 1.8921(50%fib).
 

• Immediate support is seen at 1.8753(38.2%fib) and break below could take the pair towards 1.8676(Lower BB ).

Recommendation: Good to sell around 1.8810, with stop loss of 1.8900 and target price of 1.8750