FxWirePro: GBP/AUD drops on dovish BoE hold, vulnerable to more downside
• GBP/AUD declined on Thursday after the Bank of England paved the way for an interest rate cut. • At GMT 16:05, the pair was trading down 0.29 percent at 1.8930, It dropped as low as 1.8919 after the decision. •BoE Poli…
• GBP/AUD declined on Thursday after the Bank of England paved the way for an interest rate cut.
• At GMT 16:05, the pair was trading down 0.29 percent at 1.8930, It dropped as low as 1.8919 after the decision.
•BoE Policy Committee voted 7-2 to hold the policy rate at 5.25%, matching its highest level in 16 years. Deputy Governor Dave Ramsden aligned with Swati Dhingra in supporting a reduction to 5%.
• Bearish momentum is likely to pick up with a move below 23.6%fib will target support at the lower BB at 1.8877.
• Immediate resistance is located at 1.9025 (38.2%fib ), any close above will push the pair towards 1.9107(50%fib).
•Immediate support is seen at 1.8919 (23.6%fib ) and break below could take the pair towards 1.8877 (Lower BB).
Recommendation: Good to sell around 1.8940, with stop loss of 1.9050 and target price of 1.8870.
