• GBP /AUD traded in tight range on Tuesday as investors exercised caution ahead of key inflation figures from Europe and the United States later in the week..
• Despite a light economic data calendar in the UK this week, market focus remains on upcoming consumer price data releases from the United States and Europe for clues on the monetary policy path globally.
• The pair was trading down 0.01 percent at 1.9386 after reaching daily high at 1.9425.
• From a technical viewpoint, RSI is bullish at 57, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
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• Immediate resistance is located at 1.9430 (23.6%fib), any close above will push the pair towards 1.9461 (Higher BB).
• Immediate support is seen at 1.9339(Daily low) and break below could take the pair towards 1.9273 (38.2%fib).
Recommendation: Good to buy on dips around 1.9370, with stop loss of 1.9300 and target price of 1.9460
