• GBP/AUD extended drop on Wednesday as Australian dollar firmed on growing market bets that the RBA will maintain a tighter monetary policy outlook.
• RBA Deputy Governor Andrew Hauser said inflation remains elevated and the economy is running near full capacity, strengthening expectations that additional policy tightening could be required.
• Reserve Bank of Australia Governor Michele Bullock is scheduled to appear before the Senate Economics Committee on Thursday, where markets will closely watch for policy signals.
• Any reaffirmation of the RBA’s hawkish stance could further support the Australian dollar, potentially driving GBP/AUD towards level.
• Technical are bearish, daily RSI is negative at 17 , daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9305(Daily high ), any close above will push the pair towards 1.9508(38.2%fib).
• Strong support is seen at 1.9118 (23.6%fib ), and break below could take the pair towards 1.8972 (Lower BB).
Recommendation: Good to sell on around 1.9120 with stop loss of 1.9200 and target price of 1.9060
