• GBP/AUD went on the back foot on Friday as the bears dashed the hopes of the bulls amid UK rate cut uncertainty.
• BoE policymakers anticipate a significant drop in inflation over the coming months but are holding off on specifying a clear timeline for potential interest rate reductions.
• GBP/AUD neared 38.2 % fib supportin late in US session,Daily close below 38.2%fib increase the scope for much bigger drop.
• Technical are bearish, daily RSI is negative at 41, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9242 (23.6% fib), any close above will push the pair towards 1.9301 (23.6% fib).
• Strong support is seen at 1.9089 (38.2 % fib) and break below could take the pair towards 1.9035 (Lower BB).
Recommendation: Good to sell on around 1.9140, with stop loss of 1.9250and target price of 1.9070
