FxWirePro: GBP/AUD maintains bearish bias with focus on of 1.8700 level

• GBP/AUD dipped on Wednesday   investors digested Uk inflation data

• Consumer prices in April rose by ​an annual rate of 2.8%, compared with March's figures of 3.3% and ​expectations of 3.0%.

• That prompted some analysts to question the need ⁠for rapid rate hikes by the Bank of England, especially following Tuesday's data ​that showed the unemployment rate ticking up..

•.  BoE Governor Andrew Bailey said a rise in market interest rates since the start of the ‌Iran ⁠war has given the central bank more time to assess the economic effects of the conflict..

• Markets are pricing in just over 50 basis points of BoE tightening by December, down from around 60 bps on Tuesday.

• Immediate resistance is located at 1.8808 (SMA 20), any close above will push the pair towards 1.8889(38.2%fib).

• Immediate support is seen at 1.8567 (23.6%fib) and break below could take the pair towards 1.8506 (Lower BB).

Recommendation: Good to sell around 1.8820 with stop loss of 1.8900   and target price of 1.8700