GBPAUD On WatchPrice action in GBPAUD is starting to look interesting here to the long side. Following the failed breakdown below 1.7218, with price instead reversing higher from a strong double-bottom formation, the pair is now holding in a tight block of consolidation, capped by the 1.7811 level. The retail long position has shrunk significantly over the recent grind higher, suggesting room for a breakout higher as retail players flip net-short. With this in mind, look for a closing breach of the 1.7811 level targeting a move up to the 1.8143 level initially.Keep an Eye OnWith UK inflation seen hitting 40-year highs last month (9%), hawkish BOE expectations are back in focus. The prospect of more aggressive action from the BOE has risen, creating fresh upside risks for GBP. This is particularly true given the massive GBP short position currently held by non-commercials, making the pair vulnerable to a sharp squeeze higher if this position starts to unwind. BOE member commentary will be key to gauging the likelihood of such a shift near-term.