- GBP/AUD hovers around 5-DMA at 1.7147, intraday bias neutral.
- The pair edges lower from session highs at 1.7232 after UK CPI data misses expectations.
- UK’s inflation figures surprised to the downside dragging sterling lower across the board.
- UK inflation rose at a monthly 0.1% (vs. 0.2% expected) and 3.0% y/y (vs. 3.1% forecasted).
- Focus now shall be on BoE Governor M.Carney’s speech at the ECB policy panel.
- The pair is trading in a 'Symmetric Triangle' pattern and finds strong support at 20-DMA at 1.7075.
- We see weakness on break below 20-DMA, scope then for test of 50-DMA at 1.6923.
- On the flipside, triangle top at 1.7350 is major resistance, breakout above could propel the pair to new highs.
Support levels - 1.7148 (5-DMA), 0.7075 (20-DMA), 1.6923 (50-DMA)
Resistance levels - 1.7260 (Nov 10 high), 1.73, 1.7350 (Triangle top)
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -79.5073 (Bearish), while Hourly AUD Spot Index was at -33.5863 (Neutral) at 1030 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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