FxWirePro: GBP/AUD uptrend gains momentum but hurdles ahead

•  GBP/AUD recovered on Monday as as sterling gained support from hawkish remarks by BoE’s Catherine Mann.

• BOE policymaker Catherine Mann warned that firms are still responding to high inflation, signaling that rate-setters must remain vigilant in controlling price pressures.

•  Mann said there’s still “work to do” to return inflation to the BOE’s 2% target, noting that companies consider inflation when planning prices a year ahead.

•  Focus now turns to this week’s UK inflation data, ahead of the budget release and the BOE’s rate decision on December 18.

•  Immediate resistance is located at 2.0326 (50% fib), any close above will push the pair towards 2.0550 (61.8% fib).

• Immediate support is seen at 2.0186 (38.2%fib) and break below could take the pair towards 1.9943  (23.6%fib).

Recommendation: Good to buy around 2.0200, with stop loss of 2.0000 and target price of 2.0400