FxWirePro: GBP/AUD neutral in the near term, scope for further downside

• GBP/AUD edged higher but gains were limited as  investors assessed domestic economic data ahead of a Bank of ‌England monetary policy meeting later this week.

• The Bank of England is expected to leave interest rates unchanged on Thursday, while markets are fully pricing in one 25-basis-point hike and assigning a high probability to another increase by year-end.

•   Britain’s labour market remained weak, with wage growth near a six-year low, vacancies at their lowest level since 2021 and hiring continuing to decline, according to official data..

Average weekly earnings, excluding bonuses, rose 3.5% in the three months to July from a year earlier, according to data released by the Office for National Statistics on Tuesday..

• Britain’s unemployment rate held steady at 4.9% in the three months to July, although the figures are based on a labour-force survey that is still undergoing an overhaul..

• Immediate resistance is located at 1.8902(SMA 20), any close above will push the pair towards 1.9009(38.2%fib).

• Immediate support is seen at 1.8883(38.2%fib) and break below could take the pair towards 1.8720(23.6%fib ).

Recommendation: Good to sell around 1.8910, with stop loss of 1.8960 and target price of 1.8860