FxWirePro: GBP/AUD set for a slump, shorts hold the advantage

• GBP/AUD pair slipped on Monday as the British pound weakened ahead of upcoming UK economic data, which could influence expectations regarding UK interest rates.

• Investors will be paying close attention to UK labor market data, British GDP figures for July, and U.S. inflation data this week to gauge the direction of monetary policy in both the UK and the US.

Traders are pricing in 45 basis points (bps) of rate cuts from the Bank of England (BoE) by the end of this year, versus 112 bps from the U.S. central bank, market pricing showed.

•A daily close fall  50%fib  will further improve the technical outlook, and open the possibility of a drop towards 1.9650 level

• Immediate resistance is located at 1.9698(38.2%fib), any close above will push the pair towards 1.9800(Jul 31st high).

• Immediate support is seen at 1.9564 (50%fib) and break below could take the pair towards 1.9500 (61.8%fib).

Recommendation: Good to sell  around 1.9630, with stop loss of 1.9700 and target price of 1.9520