FxWirePro: GBP/AUD attracts selling interest, could be on verge of a bigger drop

• GBP/AUD dipped  on Monday as    investors rushed to the safety of the U.S. dollar and ditched the currencies of countries most exposed to rising energy costs

• Rising energy prices have fueled inflation fears, leading markets to scale back February bets on two Bank of England rate cuts.

• Money markets mostly expect the Bank of England to keep interest rates steady for the rest of the year amid rising energy costs and renewed inflation concerns from the war..  

• Traders were also ⁠weighing the potential costs of fresh government support for energy bills after Prime Minister Keir Starmer said easing the cost-of-living strain was at the top of his mind..

• Immediate resistance is located at 1.9080 (SMA 20), any close above will push the pair towards 1.9298(38.2%fib)

•  Support is seen at 1.8859(23.6%fib) and break below could take the pair towards 1.8810(Lower BB).

Recommendation: Good to sell  around 1.9000 with stop loss of 1.9100 and target price of 1.8900