• GBP/ AUD strengthened on Tuesday as expectations of more interest rate hikes by the Bank of England supported Pound.
• UK rate expectations for Thursday are for a 25 basis points hike, with a 25% chance for a 50 bps hike, though 2- and 5-year gilts are more than 10 bps lower heading into Wednesday's price data.
• GBP/USD bulls maintain control as bullish signals are increasing as trades above 38.2%fib the 5-DMA.
• Immediate resistance is located at 1.8839 (Daily high), any close above will push the pair towards 1.8913 (23.6%fib).
• Strong support is seen at 1.8758 (38.2%fib) and break below could take the pair towards 1.8659 (5DMA )
Recommendation: Good to buy around 1.8810 with stop loss of 1.8740 and target price of 1.8900
