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FxWirePro: GBP/AUD neutral in the near term, scope for further downside

• GBP/AUD  initially dipped but recovered ground    as market awaited Key Australian CPI data for further direction.

• The first inflation data of the year will offer clearer guidance on whether the Reserve Bank’s recent cash rate hike was a one-off move or the start of further tightening..

• Australia will publish its January inflation data on Wednesday, with the Consumer Price Index (CPI) expected to rise 3.7% year-on-year, slightly below December’s 3.8% reading..

• January CPI is projected at 3.7%, while Trimmed Mean CPI is expected to hold steady at 3.3% year-on-year, unchanged from the previous month..

• Immediate resistance is located at 1.9270(38.2%fib), any close above will push the pair towards 1.9312(SMA 20).

• Strong support is seen at 1.9027 (23.6%fib) and break below could take the pair towards 1.8909 (Lower BB).

 Recommendation: Good to sell on  around 1.9120 with stop loss of 1.9180 and target price of 1.8930
 

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