FxWirePro : GBP/AUD drops sharply as BoE cuts rates and revises growth forecasts lower

• GBP/AUD declined sharply on Thursday after the BoE delivered a widely expected 25bp rate cut with dovish overtones.

• The Bank of England (BoE) announced a 25 basis point (bps) rate cut on Thursday, lowering the policy rate to 4.5%.

• Thursday's rate cut is the third since the BoE began reducing borrowing costs from a 14-year high in August, keeping British rates among the highest in advanced economies.

• The central bank halved its growth forecast for this year to 0.75%, citing weak business and consumer sentiment and sluggish productivity growth. However, it slightly raised the growth forecasts for 2026 and 2027 to 1.5% from 1.25%.

• Immediate resistance is located at 1.9957(38.2%fib ), any close above will push the pair towards 2.0070(Higher BB).

• Immediate support is seen at 1.9725 (50%fib), break below could take the pair towards 1.9601(Jan 24th low).

Recommendation: Good to sell around 1.9820 with stop loss of 1.9900 and target price of 1.9700