• GBP/ AUD strengthened on Wednesday as the pair was supported by hawkish comments by BoE Governor Andrew Bailey.
• Bailey said that if price pressures were to be more persistent, further tightening of policy may be required.
• A rally towards 1.8900 is possible if GBP/ AUD bulls overcome resistance at 23.6%fib.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 56,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.8838( 23.6%fib), any close above will push the pair towards 1.8948(Higher BB).
• Immediate support is seen at 1.8727 (5DMA) and break below could take the pair towards 1.8561(38.2%fib).
Recommendation: Good to buy around 1.8740, with stop loss of 1.8680 and target price of 1.8900
