• GBP/AUD retreated on Monday from highs as the pair was weighed down on diminishing BoE rate hike expectations.
• Investors took the view the Bank of England would keep interest rates on hold to assess its economic impact before tightening monetary policy.
• Bulls will need a clear 1.8623 ( 38.2% fib) to take greater control, failure to break higher will spur fresh downward momentum.
• Technical signals are mixed as RSI is at 48, daily momentum studies 5, 30 DMAs are trending north.
• Immediate resistance is located at 1.8532 (50%fib ), any close above will push the pair towards 1.8621(38.2%fib).
• Strong support is seen at 1.8486 (5DMA) and break below could take the pair towards 1.8433 (61.8% fib).
Recommendation: Good to buy on dips around 1.8500, with stop loss of 1.8400 and target price of 1.8600.
