• GBP/AUD declined on Wednesday the hawkish RBA’s policy outlook boosted Australian dollar against pound.
• RBA on Tuesday ruled out any possibility of an interest rate cut this year, citing that core inflation is projected to decrease gradually. This decision comes after the bank maintained steady interest rates for the sixth consecutive meeting.
• The is pair heading towards the lower 50% fib, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 50, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9480 (38.2% fib), any close above will push the pair towards 1.9653 (23.6% fib).
• Strong support is seen at 1.9337 (50% fib) and break below could take the pair towards 1.9125(61.8% fib).
Recommendation: Good to sell on around 1.8430, with stop loss of 1.8550 and target price of 1.9340
