• GBP /AUD strengthened on Monday as BoE rate expectations and easing fears about the economic impact of the Omicron variant on Uk economy boosted pound.
• Investors have ramped up expectations that the Bank of England will raise interest rates as early as next month after a surprise hike in December.
• The pair hit daily high at 1.8956 and was last trading at 1.9823
• Immediate resistance is located at 1.8925 (23.6% fib), any close above will push the pair towards 1.8981 (Higher BB).
• Immediate support is seen at 1.8875(5DMA) and break below could take the pair towards 1.8845 (38.2%fib).
Recommendation: Good to buy on dips around 1.8900, with stop loss of 1.8800 and target price of 1.8970.
