• GBP/AUD initially gained on Wednesday but gave up most of the ground as traders positioned ahead of Thursday's Bank of England meeting
• All eyes are now on the Bank of England, which on Thursday is widely expected to hold rates steady, though recent softer inflation and wage data could strengthen the case for a rate cut.
• Markets are still pricing around a one-in-three chance of a 25-basis-point rate cut, leaving scope for a knee-jerk reaction in the pound in either direction depending on the outcome.
• A raft of data released last month, most notably cooler-than-expected inflation figure, caused markets to raise bets on BoE easing, and weighed on the pound.
• Immediate resistance is located at 2.0226 (38.2%fib), any close above will push the pair towards 2.0353(SMA 20).
• Immediate support is seen at 1.9990 (23.6%fib) and break below could take the pair towards 1.9908 (Lower BB).
Recommendation: Good to sell around 2.0080 with stop loss of 2.0180 and target price of 1.9960
