• GBP/AUD rose on Monday as sterling firmed as investors focus shifted to economic data and central bank policy meetings later this week.
• Inflation data from Japan, Germany, and France will be released on Friday, along with the Fed's preferred inflation gauge in the U.S.
• Federal Reserve and European Central Bank rate decisions are due on Wednesday and Thursday, respectively.
•A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 2.0100 level
• Immediate resistance is located at 1.99967 (38.2%fib), any close above will push the pair towards 2.0093 (Jan 8th high).
• Immediate support is seen at 1.9766 (50%fib) and break below could take the pair towards 1.9557(61.8%fib).
Recommendation: Good to buy around 1.9850, with stop loss of 1.9700 and target price of 2.0050
