• GBP/AUD declined on Tuesday as fears of a surge in inflation in the UK overshadowed comments by the Bank of England about a possible rate hike.
•Governor Andrew Bailey reiterated on Monday that he and other members of the Monetary Policy Committee saw a growing case to raise interest rates.
• Selling pressure will remain in the short-term, only a move above 1.8811( 38.2 % fib) strong resistance will shift the bias higher.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 42.
• Immediate resistance is located at 1.8771 ( 21DMA), any close above will push the pair towards 1.8811( 38.2 % fib).
• Strong support is seen at 1.9867 (23.6% fib ) and break below could take the pair towards 1.8582 (Lower BB).
Recommendation: Good to sell around 1.8730, with stop loss of 1.8800 and target price of 1.8600
