FxWirePro:GBP/AUD dips on BoE rate cut expectation, more downside expected

• GBP/AUD declined on Wednesday,   as rumours that the BoE could cut rates weighed on British pound.

•BoE is expected to follow Fed with rate cut this month. March 26 is the next scheduled BoE meeting, A rate cut might come earlier than that .

• At GMT 17:12, the pair  already trading lower on the day, extended its drop to hit $1.9427, a 2-weeks low, and was last down 0.13% on the day  

• Technical signals show bearish momentum , the 5 DMA and 21 DMAs trend south, while RSI is heading south at 50.95.

• On the upside, immediate resistance is located at 1.9521 (14 DMA ), any close above will push the pair towards 1.9605 (78.6% fib).

• On the downside, immediate support is seen at 1.9425 (61.8% fib ) and break below could take the pair towards 1.9295 (50% fib ).

Recommendation: Good to sell on rallies around 1.9450, with stop loss of 1.9600 and target price of 1.9300.