• GBP/AUD slipped lower on Wednesday as Australian dollar firmed after the Reserve Bank of Australia raised its benchmark rate for the first time since November 2023
• The RBA unanimously lifted interest rates by 25 basis points to 3.85%, marking its first hike in two years and coming just six months after the August rate cut.
• Australia’s central bank has joined the Bank of Japan as the only developed-world policymakers still hiking rates, even as investors bet on cuts in the U.S., UK and Canada and anticipate a prolonged pause from the ECB.
• Technical signals are bearish as RSI is at 28, momentum studies 11,14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.9737 (38.2%fib), any close above will push the pair towards 1.9832(SMA 20).
• Immediate support is seen at 1.9450(23.6%fib) and break below could take the pair towards 1.9355(Lower BB).
Recommendation: Good to sell around 1.9530 with stop loss of 1.9600 and target price of 1.9450
