• GBP /AUD strengthened on Wednesday after softer than expected core Aus CPI data weighed on Australian dollar.
• Australian inflation eased in the first quarter, probably confirming it has past its peak. Core inflation dipped below forecasts, suggesting less pressure for the RBA to resume raising rates at its May 2 meeting.
• The pair hit daily high at 1.8915 and was last trading at 1.8891 at (GMT 19:42).
• From a technical viewpoint, RSI is strongly bullish at 71, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.8909 (23.6% fib), any close above will push the pair towards 1.9000 (Psychological level).
• Immediate support is seen at 1.8662(38.2% fib) and break below could take the pair towards 1.8557 (9DMA).
Recommendation: Good to buy on dips around 1.8850, with stop loss of 1.8750 and target price of 1.8950.
