• GBP/AUD edged lower on Thursday as improved risk sentiment and hawkish RBA expectations supported Australian dollar.
• The RBA has maintained a data-dependent stance, bets for a Reserve Bank of Australia (RBA) rate hike have risen significantly following hotter-than-expected July inflation data and the better-than-expected second-quarter Gross Domestic Product (GDP).
•Markets are now pricing in a higher probability of a move at the next policy meeting, though the RBA has stressed that decisions will be guided by incoming data.
• Investors will now turn their attention to Friday's U.S. payrolls report for further clues on the likely path of Federal Reserve policy
• Immediate resistance is located at 1.8904(38.2%fib), any close above will push the pair towards 1.9013(SMA 20).
• Immediate support is seen at 1.8741(38.2%fib) and break below could take the pair towards 1.8640(Higher BB ).
Recommendation: Good to sell around 1.8800, with stop loss of 1.8900 and target price of 1.8740
