• GBP/AUD edged lower on Wednesday as surging bond yields and elevated oil prices kept the risk-off mood firm in markets.
• Crude prices rose, with Brent futures holding around $101 a barrel, as investors weighed higher Gulf exports against persistent supply risks from the Middle East conflict and a storm approaching US oil-producing regions
• The sharp global bond selloff could increase pressure on finance minister John Healey ahead of his first budget
•On the data front, British house prices were flat in September after recording their first annual decline since 2023 in August, according to Lloyds data, which came in weaker than analysts had expected.
• Money markets are pricing in an 85% probability of a 25-basis-point rate hike in November, which would lift the policy rate to 4%, with four further hikes expected by mid-next year.
• Immediate resistance is located at 1.9033(50%fib), any close above will push the pair towards 1.9094(Higher BB).
• Immediate support is seen at 1.8903(38.2%fib) and break below could take the pair towards 1.8745(23.6%fib).
Recommendation: Good to sell around 1.8900, with stop loss of 1.8950 and target price of 1.8820
