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FxWirePro: GBP/AUD outlook weaker on renewed downside pressure

• GBP/AUD  dipped on Monday as traders continue to digest the recent US employment report that keeps investors’ chances about an interest rate cut by the Fed..

•  On the data front, UK retail sales volumes rose 0.6% in July from June, the Office for National Statistics reported Friday, beating economists’ forecast for a 0.2% increase.

• Data highlights mounting fears among businesses that Finance Minister Rachel Reeves’ upcoming November 26 budget could bring further tax rises.

• Technical signals are bearish as RSI is at 39, daily momentum studies  5, 9 and 10 DMAs are trending south. 

• Immediate resistance is located at 2.0676(38.2% fib), any close above will push the pair towards 2.0724 (Higher BB).

• Strong support is seen at 2.0476 (Lower BB) and break below could take the pair towards 2.0383(23.6% fib).

Recommendation: Good to sell around 2.0580 with stop loss of 2.0680  and target price of 2.0450
 

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