FxWirePro: GBP/AUD recovers after BoE rate cut

• GBP/AUD pair initially dipped on Thursday but regained ground after the Bank of England delivered a widely expected interest rate cut.

• The BoE cut interest rates on Thursday but four of its nine policymakers - worried about high inflation - voted to keep rates unchanged, suggesting the central bank's run of rate cuts might be nearing an end

• Four MPC members voted to keep rates unchanged, including Deputy Governor Clare Lombardelli her first break from the majority and Chief Economist Huw Pill, who also supported holding the Bank Rate at 4.25%.  

• The central bank maintained its message of taking a "gradual and careful approach" to further rate cuts, while introducing a new element to its outlook guidance.

• Immediate resistance is located at 2.0710(Higher BB), any close above will push the pair towards 2.0768(50%fib).

• Strong support is seen at 2.0561(SMA20) and break below could take the pair towards 2.0490(61.8%fib).

Recommendation: Good to buy around 2.0600 with stop loss of 2.0540 and target price of 2.0680