• GBP/AUD declined on Monday as rally in oil prices and better-than-feared China's factory data boosted Australian dollar against pound ahead of Tuesday’s RBA’s rate decision.
• The RBA is likely hike interest rates once more by a quarter percentage point on Tuesday and pause for the rest of the year as inflation is still running well above the target .
• The pair erased most of Friday’s gains , the pair was last down at 1.11% at 1.9103.
• Technical signals are bearish as RSI has turned lower, daily momentum studies 5, 9 and 10 DMAs are trending south.
• Immediate resistance is located at 1.9150(38.2%fib), any close above will push the pair towards 1.9332(23.6%fib)
• Strong support is seen at 1.9078 (5DMA) and break below could take the pair towards 1.8995(50%fib).
Recommendation: Be on side-lines
