• GBP/AUD traded in narrow range on Tuesday as investors adopted a cautious stance ahead of the Bank of England’s policy decision later this week.
.• Focus later this week will shift to the Bank of England’s policy decision, where rates are expected to remain unchanged, with investors watching for any hints of a move toward hikes later in the year..
• Britain's heavy reliance on natural gas has led investors to see its economy as especially vulnerable to the war-fuelled jump in energy prices.
•Domestic politics also drew attention, with British Prime Minister Keir Starmer’s former close aide Morgan McSweeney taking responsibility for backing the “wrong” choice in appointing Labour veteran Peter Mandelson as ambassador to Washington..
• Immediate resistance is located at 1.8950 (SMA20), any close above will push the pair towards 1.9038 (38.2%fib).
• Immediate support is seen at 1.87057 (23.6%fib) and break below could take the pair towards 1.8693(Lower BB).
Recommendation: Good to sell around 1.8850 with stop loss of 1.9000 and target price of 1.8760
