• GBP/AUD declined on Wednesday as the pair attracted sellers after below-forecast U.S. inflation data raised expectations of a softer Fed rate path.
• US CPI gained just 0.2% last month, the Labor Department said on Wednesday, lifted by rises in gasoline prices as well as rents, which offset a decrease in prices of used motor vehicles.
• The pair hit daily low at 1.9111, it was last down 1.08% at 1.9120 at GMT 18.28.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is has turned sharply lower.
• Immediate resistance is located at 1.9200 (38.2 % fib), any close above will push the pair towards 1.9348 (38.2 % fib).
• Strong support is seen at 1.9079 (14DMA ) and break below could take the pair towards 1.9079(50 % fib).
Recommendation: Good to sell around 1.9140, with stop loss of 1.9260 and target price of 1.9030
