FxWirePro: GBP/AUD extends drop, faces 23.6%fib support

• GBP/AUD extended drop  on Wednesday  as Australian dollar firmed on  growing market bets that the RBA will maintain a tighter monetary policy outlook.

• RBA Deputy Governor Andrew Hauser said inflation remains elevated and the economy is running near full capacity, strengthening expectations that additional policy tightening could be required.

• Reserve Bank of Australia Governor Michele Bullock is scheduled to appear before the Senate Economics Committee on Thursday, where markets will closely watch for policy signals.

• Any reaffirmation of the RBA’s hawkish stance could further support the Australian dollar, potentially driving GBP/AUD  towards  level.

• Technical are bearish, daily RSI is  negative  at 17 , daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.9305(Daily high ), any close above will push the pair towards 1.9508(38.2%fib).

• Strong support is seen at 1.9118 (23.6%fib ), and break below could take the pair towards 1.8972 (Lower BB).

Recommendation: Good to sell on  around 1.9120 with stop loss of 1.9200 and target price of 1.9060