FxWirePro: GBP/AUD rebounds after BoE holds rates steady

•  GBP/AUD bounced back sharply on Thursday as the BoE’s steady-rate stance boosted confidence in the UK currency.

• The BoE left rates at 4.25%, as expected, and the minutes showed support was building among policymakers for a cut, possibly as soon as August, according to markets pricing.

• The BoE’s decision was well-received by markets, with the pound outperforming other risk currencies and holding firm against a stronger dollar, despite rising safe-haven demand amid Middle East conflict fears.

• The BoE’s decision followed a rate cut by the Swiss National Bank earlier on Thursday — a move that met expectations but was smaller than markets had hoped for, given the franc’s strong performance this year.

• Immediate resistance is located at 2.0847(50% fib), any close above will push the pair towards 2.1044(Higher BB).

• Strong support is seen at 2.0577(61.8% fib) and break below could take the pair towards 2.0492(May 5th low).

Recommendation: Good to buy   around 2.0760, with stop loss of 2.0650 and target price of 2.0850