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FxWirePro: GBP/AUD reverses course as the dovish stance from the BoE weighs on sterling

• GBP/AUD declined sharply on Thursday as sterling attracted sellers after a dovish message from the Bank of England.

• The Bank of England kept its main interest rate unchanged at 4.75% on Thursday but policymakers became more divided about whether rate cuts were needed to tackle a slowing economy.

• The dovish tone from the Bank of England's policy statement led to  sell-off in the pound.

• The sterling  erased Wednesday’s gains against the Australian dollar , the pair was last down  at 0.91% at  2.0036 

• Immediate resistance is located at 2.0228(23.6% fib), any close above will push the pair towards 2.0425(Higher BB)

• Support is seen at 1.9997 (38.2% fib) and break below could take the pair towards 1.9819(50% fib).

Recommendation: Good to sell   around 2.0080, with stop loss of 2.0150 and target price of 1.9960
 

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