FxWirePro: GBP/AUD neutral in the near-term, scope for downward resumption

• GBP/AUD initially dipped but recovered some ground as investors digested Bank of England rate decision.

• The BoE opted to leave interest rates steady, the 5-4 vote split caught traders off guard, revealing a narrow margin of support for the hold and a significant faction already leaning toward cuts.

• Following the decision, several BoE members noted that while inflation remains a concern, the restrictive nature of current rates is weighing more heavily on economic momentum. This shift has led markets to pull forward rate cut expectations.

• Investors are now eyeing March for the bank's next move, with the odds of a 25bp cut next month hovering near 50%.

• Technical signals are bearish as RSI is at 28, momentum studies  11,14  and 21 DMAs are trending down.

• Immediate resistance is located at 1.9591 (Daily high), any close above will push the pair towards 1.9801(38.2%fib).

• Immediate support is seen at 1.9427(23.6%fib) and break below could take the pair towards 1.9293(Lower BB).

Recommendation: Good to sell around 1.9540 with stop loss of 1.9600 and target price of 1.9450