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FxWirePro: GBP/AUD drops after BoE 50bp rate hike,vulnerable to more downside

• GBP/AUD declined on Thursday after   Bank of England (BoE) hiked by 50 basis point and   adopted a more dovish tone on inflation.

• The central bank raised interest rates for the 10th consecutive time by a widely expected 50 basis points, but dropped its pledge to keep increasing them "forcefully" if needed.

• The pair dropped to test 23.6% fib. A break under  would unmask 1.7150 level in the short term.

• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 32.

•Immediate resistance is located at 1.7359(5DMA ) , any close above will push the pair towards 1.7410 (38.2% fib).

• Immediate support is seen at 1.7231(23.6% fib ) and break below could take the pair towards 1.7188 (Lower BB ).

Recommendation: Good to around 1.7270, with stop loss of 1.7390  and target price of 1.7200.

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