FxWirePro: GBP/AUD firms slightly, but downward resumption looks likely

•  GBP/AUD rose modestly on Thursday, although the pair remained subdued  as traders assessed   tensions in the Middle East and awaited new catalyst..

• Hopes for a phased US-Iran agreement to reopen the Strait of Hormuz and lift the US blockade provided some relief to markets, reducing fears of an extended energy-supply disruption..

• Oil prices retreated on the headlines, offering some relief to government bonds as inflation concerns eased, while the softer oil backdrop put modest pressure on the US dollar..

• Growth in British business activity cooled this month and inflation pressure built, a survey showed on Wednesday.

 • Money markets are pricing in around 100 basis points of BoE rate hikes over the next 12 months, ​implying four quarter-point increases from the current 3.75% rate.

• Immediate resistance is located at 1.8920(50%fib), any close above will push the pair towards 1.8969(Higher BB).
 

• Immediate support is seen at 1.8828(SMA 20) and break below could take the pair towards 1.8745(50%fib ).

Recommendation: Good to sell around 1.8850, with stop loss of 1.8900 and target price of 1.8750