FxWirePro: GBP/AUD loses momentum but outlook is bullish

  • GBP/ AUD retreated slightly on Thursday as  oil prices and   worries that persistent inflation kept investors  cautious.

• Oil prices rose as investors weighed increased Middle East energy flows against the ongoing US-Iran impasse.

•Governor Andrew Bailey and other policymakers have signaled increased support for higher rates amid concerns that rising energy prices could prolong above-target inflation.

•  BoE interest rate-setter Catherine Mann said the central bank's handling of the Middle East war shock ⁠raised UK borrowing costs, offering little comfort to officials.

• On the data front, British house prices posted their weakest annual growth since December 2025, underscoring the impact of higher ⁠borrowing costs.

• Traders are currently pricing in a 85% chance ⁠that the Bank of England will increase borrowing costs at its November meeting.

• Immediate resistance is located at 1.9065(Higher BB), any close above will push the pair towards 1.91311(38.2%fib).
 

• Immediate support is seen at 1.8949(50%fib) and break below could take the pair towards 1.8863(SMA20 ).

Recommendation: Good to buy  around 1.9030, with stop loss of 1.8960 and target price of 1.9100