FxWirePro:GBP/AUD extends losses after BoE cuts rates,more downside expected

• GBP/AUD dipped below 1.9600 level on Thursday  after the Bank of England cut interest rates following a tight vote by its policymakers.

• The BoE cut interest rates from 5.25% to 5.00%. Governor Andrew Bailey led the 5-4 decision to reduce rates by a quarter-point.

• The Bank of England is staying tight-lipped on when it expects to cut rates again,  but investors are betting on another rate cut this year.

• Immediate resistance is located at 1.9671 (38.2% fib), any close above will push the pair towards 1.9818(23.6%fib)

• Strong support is seen at 1.9536 (50% fib)and break below could take the pair towards 1.9395 (61.8% fib).

Recommendation: Good to sell  around 1.9630, with stop loss of 1.9700 and target price of  1.9550