GBP/AUD Buyers Push to Reverse Trend Ahead of BoE Meeting

Market Overview

Rising trade tensions have led to negative sentiment in Asian currencies on Wednesday, increasing demand for the British Pound against the Australian Dollar. As economic uncertainty intensifies, investors are shifting toward GBP, anticipating further developments from the Bank of England’s upcoming policy meeting. Meanwhile, Australian market participants remain cautious ahead of key labor market data, which could influence AUD sentiment in the coming sessions.

Technical Analysis

On the two-hour chart, GBP/AUD is on the verge of confirming a bullish reversal. Buyers have established a higher low at 2.04108 and successfully pushed above the previous peak at 2.04557. The pair is now testing the 100-period moving average, coinciding with the immediate resistance at 2.04679. A sustained break above this level would strengthen the bullish outlook, with potential targets at 2.04834, 2.05006, and 2.05283.

Momentum indicators support bullish bias. The RSI is trending higher, while MACD signals increasing buying pressure. However, if sellers regain control at the 100-period moving average, a break below 2.04108 would invalidate the bullish scenario and shift focus back to lower support levels.

Key Technical Levels

• Resistances: 2.04679, 2.04834, 2.05006, 2.05283
• Supports: 2.04679, 2.04557, 2.04385, 2.04108

Fundamental Drivers

Thursday’s key events include the Bank of England’s policy decision, where interest rates are expected to remain unchanged. The BoE’s tone on future policy adjustments will be critical for GBP volatility. Additionally, the UK labor market report will provide further direction. In Australia, investors are awaiting employment data, including unemployment rate, labor force participation, and job creation figures, which could drive AUD fluctuations.

Conclusion

GBP/AUD is testing key resistance as buyers attempt to extend gains. A breakout above 2.04679 could confirm bullish continuation, while failure to hold above this level may shift focus back to supports. The BoE meeting and Australian employment data remain the primary catalysts for near-term price action.

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