FxWirePro: GBP/AUD extends drop, vulnerable to more downside

• GBP/AUD  dipped on Thursday  as   U.K. political uncertainty amid a local vote and a less-hawkish Bank of England path weighed..

• Political uncertainty has weighed on sentiment, with the Gorton and Denton vote in Greater Manchester posing a fresh challenge for Starmer.

• The Gorton and Denton vote in Greater Manchester marks the latest challenge for Starmer, following scrutiny over policy U-turns and the appointment of Peter Mandelson as ambassador to Washington.

• Meanwhile, BoE Governor Andrew Bailey said a rate cut in March was a "genuinely open question," pointing to services inflation as a key concern.

• Weak GDP growth, higher Q4 unemployment, and softer January inflation have strengthened expectations that the Bank of England may cut rates soon...

• Immediate resistance is located at 1.9124(Daily high), any close above will push the pair towards 1.9290(SMA 20).

• Strong support is seen at 1.8959 (23.6%fib) and break below could take the pair towards 1.8877 (Lower BB).

 Recommendation: Good to sell on  around 1.9000  with stop loss of 1.9060 and target price of 1.8930