• GBP/AUD edged lower on Thursday after the Bank of England kept interest rates unchanged as expected.
• The Bank of England kept interest rates unchanged on Thursday but warned that rates could rise if the Iran war persists, while forecasting UK inflation to exceed 4% early next year.
• The BoE’s Monetary Policy Committee voted 6-3 to keep interest rates at 3.75%, matching July’s decision and economists’ median forecast in a Reuters poll..
• BoE Governor Andrew Bailey said the impact of the energy price surge on wider inflation remained unclear..
• The BoE also unveiled a new long-term plan to reduce its holdings of British government bonds accumulated during past efforts to support the economy. Active gilt sales will be paused for six months while the details are finalised.
• Immediate resistance is located at 1.8867(SMA 20), any close above will push the pair towards 1.8923(38.2%fib).
• Immediate support is seen at 1.8745(38.2%fib) and break below could take the pair towards 1.8689(Lower BB ).
Recommendation: Good to sell around 1.8890, with stop loss of 1.8950 and target price of 1.8800
