• GBP/AUD initially declined on Wednesday on hot Australian CPI data but recovered some ground on profit taking.
• Data from the Australian Bureau of Statistics on Wednesday showed the consumer price index (CPI) surged 1.9% in the December quarter, outpacing market forecasts of 1.6%
• The pair hit daily low at 1.7313, it was last trading at 1.7460.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 39.
• Immediate resistance is located at 1.7512 (50 % fib), any close above will push the pair towards 1.7549 ( 5DMA).
• Strong support is seen at 1.7428 (38.2% fib ) and break below could take the pair towards 1.7301(23.6% fib).
Recommendation: Good to sell around 1.7460, with stop loss of 1.7600 and target price of 1.7400
