• GBP/AUD slipped lower on Monday as pound was weighed down by dovish comments from BoE Governor Andrew Bailey.
• Governor Andrew Bailey emphasizing the importance of upcoming labour market data due Thursday, suggesting rate cuts could be on the table if the jobs picture deteriorates further.
• UK Inflation and jobs data due later this week could shape expectations for the central bank’s next policy move.
• Traders expect the BoE to cut rates to 4% in August, with markets also anticipating a second cut before the end of 2025.
• Technical signals remain bearish, with RSI at 36 and the 5-, 9-, and 11-day moving averages all trending lower.
• Immediate resistance is located at 2.0672(July 1th high), any close above will push the pair towards 2.0807 (20 SMA).
• Strong support is seen at 2.0470(50% fib) and break below could take the pair towards 2.0411(Lower BB
Recommendation: Good to sell around 2.0530, with stop loss of 2.0650 and target price of 2.0450
