• GBP/AUD initially gained on Wednesday after UK CPI data but gave up ground as investors awaited Bank of England's monetary policy meeting on Thursday.
• The BoE is expected to raise interest rates by 25 basis points to 4.75% on Thursday
• A daily close above 1.8906 (23.6% fib)will further improve the technical outlook, and open the possibility of a rally towards 1.9000 level.
• Technical signals show RSI is at 55 bullish , daily momentum studies 9, 10 and 11 DMAs are trending upwards.
• Immediate resistance is located at 1.8906 (23.6% fib), any close above will push the pair towards 1.8975 (25th may high).
• Immediate support is seen at 1.8751 (38.2% fib) and break below could take the pair towards 1.8687 (5 DMA).
Recommendation: Good to buy on dips around 1.8770, with stop loss of 1.8700 and target price of 1.8860
