FxWirePro: GBP/AUD runs out of steam but maintains bullish outlook

• GBP/AUD  eased on Thursday as investors digested Bank of England's widely-anticipated interest rate cut

• The decision to lower rates to 3.75% was narrowly split, passing by a 5–4 vote, with no policymakers backing a larger 50-bp reduction an outcome that markets interpreted as a sign of continued caution from the central bank.

• The relatively hawkish nature of the cut dealt a blow to dovish expectations for a more aggressive easing cycle, particularly calls for another reduction as early as February that would take rates down to 3.5%.

• Governor Andrew Bailey changed his view and voted for a cut as he sees inflation returning close to the BoE's 2% target as soon as April or May next year, about a year earlier than forecast by the central bank just last month..

• Immediate resistance is located at 2.367(50%fib), any close above will push the pair towards 2.0414(Higher).

•  Immediate support is seen at 2.0187 (SMA 20) and break below could take the pair towards 2.0154(61.8%fib).

 Recommendation: Good to buy around 2.0320 with stop loss of 2.0240 and target price of 2.0450