• GBP/AUD extended its yesterday’s bounce as markets awaited the Bank of England's decision on monetary policy on Thursday.
• Money markets are pricing in a 63% chance of a 25 bps rate increase by the BoE to a 15-year high of 5.25%.
• Technical signals are bullish as RSI is at 62, daily momentum studies 5,10 ,21 DMA are trending up.
• Immediate resistance is located at 1.9455 ( 38.2%fib), any close above will push the pair towards 1.9523 ( Higher BB).
• Strong support is seen at 1.9296 (Daily low) and break below could take the pair towards 1.9263 (50%fib).
Recommendation: Good to buy around 1.9430, with stop loss of 1.9330 and target price of 1.9500
