• GBP/AUD pair weakened on Monday as investors awaited a batch of inflation and labour market data that could put the currency's recent gains to the test.
•This week’s inflation and labour data will be crucial for the Bank of England’s rate outlook and may determine whether sterling can extend its recovery after recent political turmoil in the UK.
•Traders are pricing in at least one increase to interest rates by the Bank of England this year .
• BoE chief economist Huw Pill said stronger-than-expected economic growth strengthened the case for higher interest rates.
• Immediate resistance is located at 1.9110(SMA 20), any close above will push the pair towards 1.9159(50%fib).
• Immediate support is seen at 1.9000 (Psychological level) and break below could take the pair towards 1.8892(38.2%fib).
Recommendation: Good to sell around 1.9070, with stop loss of 1.9150 and target price of 1.9000
