• GBP/AUD extended decline on Friday as the pair came under renewed selling pressure after Federal Reserve Chair Kevin Warsh delivered a hawkish message at the Jackson Hole symposium.
• Warsh warned that the Federal Reserve could have “work to do” if inflation remains above target and highlighted the lack of meaningful recent progress toward bringing inflation back to the 2% goal.
• His comments reinforced expectations that the Fed may need to keep monetary policy restrictive, with markets raising the probability of a September rate hike.
• Oil prices dipped on Friday, with Brent crude trading around $89 a barrel as traders continued to monitor a deadlock in U.S.-Iran diplomacy.
• Immediate resistance is located at 1.8988(50%fib), any close above will push the pair towards 1.9079(SMA20).
• Immediate support is seen at 1.8855 (Daily low) and break below could take the pair towards 1.8802(38.2%fib%).
Recommendation: Good to sell around 1.9000, with stop loss of 1.9080 and target price of 1.8950
