• GBP/AUD steadied on Monday as traders evaluated the prospect of a single BoE interest rate hike toward the end of the year..
• Markets now see a 70% likelihood of a single Bank of England rate increase in 2026, a notable pullback from just weeks ago when traders expected at least one hike and were strongly pricing in a second..
• BoE Governor Andrew Bailey stated last week that the central bank is not yet in a position to begin discussing interest rate cuts..
• Oil prices falling back toward $70 per barrel have lessened the need for further interest rate hikes by central banks, including the Bank of England..
• Immediate resistance is located at 1.9359(23.6%fib), any close above will push the pair towards 1.9407(Higher BB).
• Immediate support is seen at 1.9201(38.2%fib) and break below could take the pair towards 1.9086(50%fib).
Recommendation: Good to buy around 1.9240, with stop loss of 1.9150 and target price of 1.9300
