• 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
