• GBP/AUD firmed on Thursday as cable enjoyed a modest bounce as investors assessed the outlook for the Bank of England's monetary policy.
•Investors are pricing a roughly 88% chance of another 25 basis-point rate cut by the BoE at its November meeting
• Yields on British government bonds also rose as money markets priced in a roughly 89% chance on a quarter-point interest rate cut by the BoE at its November meeting.
•A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 1.9500 level
• Immediate resistance is located at 1.9574 (23.6%fib), any close above will push the pair towards 1.9603(Higher BB).
• Immediate support is seen at 1.9522 (Daily low) and break below could take the pair towards 1.9485(50%fib).
Recommendation: Good to buy around 1.9580, with stop loss of 1.9500 and target price of 1.9680
