• GBP/AUD gained some upward traction on Monday as weaker commodities prices and risk off sentiment weighed on Australian dollar.
• Australia will release the monthly inflation data on Wednesday. Forecasts are centred for a rise of 2.3% in October, picking up from 2.1% but the results are unlikely to move the rate pricing.
• A daily close above 50%fib will further improve the technical outlook, and open the possibility of a rally towards 1.9450 level
• Immediate resistance is located at 1.9368 (50%fib ), any close above will push the pair towards 1.9447(61.8%fib).
• Strong support is seen at 1.9278(38.2%fib ), and break below could take the pair towards 1.9169 (23.6%fib).
Recommendation: Good to buy around 1.9500 with stop loss of 1.9440 and target price of 1.9570
