• GBP/ AUD rose higher on Wednesday as surge was driven by stronger-than-expected UK services inflation data for June, which led markets to lower their expectations for an August rate cut.
• Official data showed that British inflation held steady at 2.0% year-on-year last month, exceeding the 1.9% expected by analysts.
• Sterling bulls are likely to make a run higher, putting 23.6%fib resistance in sharp focus.
• Immediate resistance is located at 1.9365(23.6%fib), any close above will push the pair towards 1.9429 (April 18th high).
• Immediate support is seen at 1.9288(38.2%fib) and break below could take the pair towards 1.9224 (50%fib).
Recommendation: Good to buy around 1.9320, with stop loss of 1.9260 and target price of 1.9390
