• GBP/AUD initially strengthened on Wednesday on hopes the BoE might surprise on Thursday with a 50bp rate hike , but the hawkish Fed unwound most of those gains.
• The pairs unimpressive recovery from 1.8000 low hints that bears are reluctant to abandon recent shorts entirely fearing Russia-Ukraine talks could still break down.
• Technical are bearish, daily RSI is trending down, daily momentum studies 5,11 and 14 DMAs are pointing southwards.
• Immediate resistance is located at 1.8078 (5DMA ), any close above will push the pair towards 1.8143(50%fib).
• Strong support is seen at 1.8000 (38.2%fib) and break below could take the pair towards 1.7835 (23.6%fib).
Recommendation: Good to sell around 1.8040, with stop loss of 1.8150 and target price of 1.7870
