• GBP/AUD declined on Thursday as RBA’s continued hawkish tone boosted Australian dollar.
• In a speech, RBA Governor Michele Bullock reiterated that the central bank will not hesitate to raise interest rates if necessary to control inflation, reinforcing its hawkish stance.
• The pair dropped to test 50% fib support. A break under would unmask 1.9200 level .
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 44.
•Immediate resistance is located at 1.9486 (38.2%fib ) , any close above will push the pair towards 1.9679 (23.6%fib).
• Immediate support is seen at 1.9322(50% fib ) and break below could take the pair towards 1.9032 (61.8% fib).
Recommendation: Good to sell around 1.9350, with stop loss of 1.9200 and target price of 1.9260.
