GBP/AUD chart on Trading View used for analysis
- GBP/AUD edges lower from session highs at 0.7958, focus on May's no-confidence motion.
- Sterling keeps the bid tone after UK inflation data for the month of Dec met estimates.
- Data showed consumer prices rose at a monthly 0.2% and 2.1% from a year earlier.
- Further, market consensus expects May to pass today’s no-confidence vote.
- Also BoE's Carney expressed confidence that core of the UK financial system is resilient to shocks.
- GBP/AUD has broken past 200-DMA resistance and has paused shy of 100-DMA at 1.7961.
- Breakout at 100-DMA will see further upside in the pair. Next bull target lies at 61.8% Fib at 1.8147 ahead of trendline resistance at 1.82.
Support levels - 1.7892 (200-DMA), 1.7833 (5-DMA), 1.7789 (38.2% Fib)
Resistance levels - 1.7961 (100-DMA), 1.8147(61.8% Fib), 1.82
Recommendation: Stay long on break above 100-DMA at 1.7961, SL: 1.7830, TP: 1.8145/ 1.82
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
