• GBP/AUD eased on Friday as the investors digested Federal Reserve Chair Jerome Powell comments at annual Jackson Hole conference.
• The Federal Reserve chief suggested that rate cuts are possible in the near term, though he stopped short of making a firm commitment, emphasizing data dependency.
• Powell’s remarks put significant emphasis on upcoming jobs and inflation data that will be published before the Fed’s September 16-17 policy meeting.
• In an up-and-down session, the pair hit high at 2.0909 in early trading then dipped towards 2.0835.
• Technical are bullish, daily RSI is positive at 59, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 2.0919 (Daily high), any close above will push the pair towards 2.1047 (50% fib).
• Strong support is seen at 2.0818(61.8% fib) and break below could take the pair towards 2.0677 (SMA 20).
Recommendation: Good to buy on around 2.0800, with stop loss of 2.0740 and target price of 2.0880
