FxWirePro: GBP/AUD drifts lower, could be on verge of bigger drop

• GBP/AUD dipped o Tuesday after  the Reserve Bank of Australia raised rates by 25 basis points.

• Australia’s central bank raised rates for the third time this year, taking borrowing costs to post-pandemic highs and warning that Middle East tensions and rising oil prices will keep inflation elevated.

. • Michele Bullock said the board now sees policy as slightly restrictive after recent rate hikes, giving it room to pause and assess inflation and growth risks tied to the war.

• The Reserve Bank of Australia raised its cash rate by 25 bps to 4.35%, reversing all three 2025 cuts, with an 8–1 vote signalling a more hawkish stance than March’s 5–4 split.

• Swaps imply around a 15% chance of a further move in June. An increase to 4.60% by September is about fully priced, which would be the highest since late 2011.

• Immediate resistance is located at 1.8911 (SMA 20), any close above will push the pair towards 1.9039(Higher BB).

• Strong support is seen at 1.8771(Lower BB), and break below could take the pair towards 1.8689(23.6%fib).

Recommendation: Good to sell  on  around 1.8850 with stop loss of 1.9000 and target price of 1.8750