FxWirePro : GBP/AUD drifts lower,could be on verge of bigger drop

• GBP/AUD declined on Thursday  as sterling   attracted seller following dovish remarks from Bank of England Governor Andrew Bailey.

• Bank of England Governor Andrew Bailey said Thursday he is closely monitoring the potential blow to UK economic growth from President Donald Trump’s import tariffs and the retaliatory actions they’ve triggered globally.

• Bailey expressed hope that the anticipated spike in inflation later this year—potentially reaching 3.7% according to the BoE’s latest projections would be short-lived.

• On Thursday, investors priced in nearly a 100% chance that the Bank of England will cut interest rates by 25 basis points to 4.25% at its next policy meeting on May 8.

• Immediate resistance is located at 2.0940 (50%fib ), any close above will push the pair towards 2.1229(38.%fib).

• Immediate support is seen at 2.0640 (61.8%fib), break below could take the pair towards 2.0436(61.8%fib).

Recommendation: Good to sell around 2.0900 with stop loss of 2.1000 and target price of 2.0820