• GBP/ AUD initially dipped on Thursday but recovered ground as GBP got a boost after a surprise rate hike from the Bank of England.
• Britain became the first G7 economy to hike rates since the onset of the pandemic.
• The pair currently is approaching resistance at 1.8571( 38.2%fib). A break above 1.8571would unmask 1.8700 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 51,while moving averages 5,9,and 11 DMA’s trending higher.
• Immediate resistance is located at 1.8571( 38.2%fib), any close above will push the pair towards 1.8595 (21DMA).
• Immediate support is seen at 1.8437 (50%fib) and break below could take the pair towards 1.8381(61.8%fib).
Recommendation: Good to buy around 1.8540, with stop loss of 1.8450 and target price of 1.8620
