• GBP/AUD rally extended on Thursday as the pair was boosted by higher Bank of England interest rate expectations and weaker Australian dollar.
• Latest UK inflation numbers reinforced bets that the BoE will likely hike interest rates again.
• A rally towards 2.0000 is possible if GBP/AUD bulls overcome resistance at 23.6%fib.
• From a technical viewpoint, RSI is strongly bullish at 57, daily momentum studies, 5, 10 and 21 daily MAs all climb.
• Immediate resistance is located at 1.9919(23.6%fib), any close above will push the pair towards 1.9988(Higher BB).
• Immediate support is seen at 1.9793 (Daily low) and break below could take the pair towards 1.8186 (5DMA).
Recommendation: Good to buy around 1.9890, with stop loss of 1.9790 and target price of 2.0000
