FxWirePro: GBP/AUD surges on BoE rate hold

• GBP/AUD rose sharply as the pound strengthened following the Bank of England's decision to keep interest rates steady ahead of the government's budget.

• The Bank of England kept borrowing costs unchanged, as expected, but a narrow vote and hints that Governor Andrew Bailey may support easing have boosted expectations of a December rate cut. 

• The BoE’s MPC voted 5-4 to maintain rates at 4.0% ahead of likely tax rises in Chancellor Reeves’ upcoming budget.

• For the first time, the BoE detailed the perspectives of each MPC member, improving transparency after criticism over October 2022’s 11% inflation peak.

• Immediate resistance is located at 2.0286 (38.2%fib), any close above will push the pair towards 2.0368(SMA 20).

• Immediate support is seen at 2.0005 (23.6%fib) and break below could take the pair towards 1.9908 (Lower BB).

Recommendation: Good to buy around 2.0250 with stop loss of 2.0150  and target price of 2.0360