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 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.