• GBP/AUD declined on Friday as persistently hot U.S. inflation data exacerbated investors' fears of aggressive rate hikes.
• Next week, the Bank of England is likely to raise rates for the fifth time since December as near-10% inflation, the worst cost-of-living squeeze in decades.
• The is pair heading towards the (23.6%fib, as the UK news turns more negative. Only a break and daily close above 38.2% fib resistence will shift bias to the upside.
•Technical signals are bearish as RSI is at 46, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7510 (14 DMA ), any close above will push the pair towards 1.7642 (38.2% fib).
•Immediate support is seen at 1.7436 (23.6%fib ) and break below could take the pair towards 1.7286 (Lower BB).
Recommendation: Good to sell on rallies around 1.7470, with stop loss of 1.7600 and target price of 1.7390.
