FxWirePro: GBP/AUD dips to six-month low with plenty more downside potential

• GBP/AUD dipped to six-month low on  Tuesday  as Australian dollar was bolstered by a hawkish stance from the Reserve Bank of Australia (RBA).

• The Reserve Bank of Australia on Tuesday kept its cash rate unchanged at 3.60% as expected, noting that recent data pointed to inflation potentially exceeding forecasts in the third quarter, while the economic outlook remained uncertain.

• Concluding its two-day policy meeting, the Reserve Bank of Australia said the board found it prudent to maintain a cautious stance on policy, while remaining well-positioned to respond to global developments.

• This decision came amid indications that inflation might exceed previous forecasts, prompting investors to scale back expectations for future rate cuts.

• Immediate resistance is located at 2.0409(38.2%fib), any close above will push the pair towards 2.0459(SMA 20).

• Immediate support is seen at 2.0295 (23.6%fib) and break below could take the pair towards 2.0261 (Lower BB).

Recommendation: Good to sell around 2.0340 with stop loss of 2.0400 and target price of 2.0250