• GBP/AUD strengthened on Tuesday as traders for turned to upcoming Bank of England poly meeting.
• Though BoE hike expectations have diminished recently due to Ukraine crisis, investors still expect a further 114bp of UK tightening in 2022.
• GBP/AUD hits 1.8020 after rallying off from 1.7867(intra-day low), lift stops after finding resistance at 1.8863 (23.6% fib).
• GBP/USD bears maintain control below 1.8133 (50%fib), while bulls need to clear 1.8201(9 DMA).
• Technical are bearish, daily RSI is negative at 24, daily momentum studies 5,9 and 11 DMAs are trending down.
• Immediate resistance is located at 1.8020(38.2%fib ), any close above will push the pair towards 1.8133 (50%fib).
• Strong support is seen at 1.7890 (23.6%fib) and break below could take the pair towards 1.7789(Lower BB).
Recommendation: Good to sell on around 1.8040, with stop loss of 1.8150 and target price of 1.7760
