• GBP/AUD strengthened on Wednesday as Australian dollar slipped lower after inflation data surprised on the downside.
• In February, the Australian monthly Consumer Price Index (CPI) increased by 0.2% compared to January, maintaining the annual rate at a two-year low of 3.4%. Analysts had anticipated a rise to 3.5% or higher.
• A rally towards is 1.9400 level is possible if GBP/AUD bulls overcome resistance at 1.9375
• Technical signals are bullish as RSI is at 51, daily momentum studies 5 DMA, 9 EMA are trending up.
• Immediate resistance is located at 1.9375(Daily high ), any close above will push the pair towards 1.9432(23.6%fib).
• Strong support is seen at 1.9318(Daily low) and break below could take the pair towards 1.9271 (38.2%fib).
Recommendation: Good to buy on dips around 1.9340 with stop loss of 1.9260 and target price of 1.9400
