• 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
