• GBP/AUD dipped on Tuesday as Australian dollar jumped against pound after the Reserve Bank of Australia (RBA) surprised with a rate increase.
• In the policy statement, the RBA indicated that inflation remains too high , and the additional interest rate increase aims to provide greater confidence that inflation will return to the target.
• Technicals are favouring bearish sentiment as RSI is at 46 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 1.8727(50%fib), any close above will push the pair towards 1.8829(61.8%fib)
• Strong support is seen at 1.8615 (38.2% fib)and break below could take the pair towards 1.8534 (Lower BB).
Recommendation: Good to sell around 1.8620, with stop loss of 1.8730 and target price of 1.8530
