• GBP/ AUD strengthened on Thursday as market’s focus turning to the BoE’s next meeting.
• Money markets currently suggest a bold 50 basis point hike from the BoE on Aug. 4 is much more likely than a conservative 25 bps increase..
• The pair picked up upside momentum and is approaching 1.7434 (14DMA). A close above will open up 1.7483 ( 38.2%fib) level in the short time.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 54,while moving averages are trending higher.
• Immediate resistance is located at 1.7440( 14DMA), any close above will push the pair towards 1.7476(38.2%fib).
• Immediate support is seen at 1.7344 (Daily low) and break below could take the pair towards 1.7266 (23.6%fib).
Recommendation: Good to buy around 1.7410, with stop loss of 1.7600 and target price of 1.7300
