• GBP/AUD initially gained but reversed most of the gains as an in-line inflation report did little to alter interest rate expectations.
• British inflation rose to 2.9% in July from a 15-month low of 2.6% in June, according to the Office for National Statistics, though the rise was in line with economists' forecasts in a Reuters poll.
• The data, released a day after weak labour market figures, reinforced expectations that the Bank of England will leave interest rates unchanged in September.
• Meanwhile, the sell-off in global bonds eased after the U.S. Treasury announced it would double certain liquidity support operations.
• Immediate resistance is located at 1.9096(SMA20), any close above will push the pair towards 1.9207(Higher BB).
• Immediate support is seen at 1.9006(50%fib) and break below could take the pair towards 1.8969(Lower BB).
Recommendation: Good to sell around 1.9120, with stop loss of 1.9200 and target price of 1.9060
