FxWirePro: GBP/AUD recovery facing steep rock, likely to falter

• GBP/AUD  strengthened on Wednesday  but gains were limited as caution prevailed ahead of  the BOE policy meeting  .

• The Bank of England is expected to vote 8-1 in favor of keeping interest rates steady as it navigates an uncertain inflation forecast impacting the UK economy.

• GBP/ AUD remains well below 38.2%fib resistence,daily  close below 23.6%fib  increase the scope for much bigger drop.

• Technical signals show the pair could lose more ground in the short-term as RSI is   down at 38, daily momentum studies  5, and 9 DMAs are trending  down. 

• Immediate resistance is located at 1.9016 (38.2%fib), any close above will push the pair towards 1.9078 (50%fib).

• Strong support is seen at 1.8947 (23.6%fib) and break below could take the pair towards 1.8908 (Lower BB ).

Recommendation: Good to sell around 1.9000 with stop loss of 1.9100  and target price of 1.8910