• GBP/AUD initially dipped but regained some traction on Tuesday as RBA's February meeting minutes and China's big mortgage rate cut failed to draw much excitement from investors.
• On Tuesday, the RBA discussed raising rates by a quarter-point but chose to keep them steady due to progress in inflation and unexpectedly rapid labor market loosening
• The PBOC slashed its five-year loan prime rate by 25bps, which is its biggest cut since the rate was introduced, in an effort to support China's property market.
• At GMT 20:16, the pair was trading up 0.12 percent at 1.9264 recovering from daily low at1.9200 .
• Technical are bearish, daily RSI has turned lower, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9322(38.2% fib), any close above will push the pair towards 1.9407(Feb 15th high).
• Strong support is seen at 1.9192 (50% fib) and break below could take the pair towards 1.9160(Lower BB).
Recommendation: Good to sell on around 1.9270, with stop loss of 1.9380 and target price of 1.9200
