FxWirePro: GBP/ AUD maintains bullish bias with focus on 1.8900 level

• GBP/ AUD strengthened on Tuesday  as expectations of more interest rate hikes by the Bank of England supported Pound.

•  UK rate expectations for Thursday are for a 25 basis points hike, with a 25% chance for a 50 bps hike, though 2- and 5-year gilts are more than 10 bps lower heading into Wednesday’s price data.

• GBP/USD bulls  maintain control as bullish signals are increasing as trades above  38.2%fib the 5-DMA.

• Immediate resistance is located at 1.8839 (Daily high), any close above will push the pair towards 1.8913 (23.6%fib).

• Strong support is seen at 1.8758 (38.2%fib) and break below could take the pair towards 1.8659 (5DMA )

Recommendation: Good to buy around 1.8810 with stop loss of 1.8740  and target price of 1.8900