• GBP/AUD declined on Thursday after Bank of England (BoE) hiked by 50 basis point and adopted a more dovish tone on inflation.
• The central bank raised interest rates for the 10th consecutive time by a widely expected 50 basis points, but dropped its pledge to keep increasing them "forcefully" if needed.
• The pair dropped to test 23.6% fib. A break under would unmask 1.7150 level in the short term.
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 32.
•Immediate resistance is located at 1.7359(5DMA ) , any close above will push the pair towards 1.7410 (38.2% fib).
• Immediate support is seen at 1.7231(23.6% fib ) and break below could take the pair towards 1.7188 (Lower BB ).
Recommendation: Good to around 1.7270, with stop loss of 1.7390 and target price of 1.7200.
