• GBP/AUD remains anchored near the 1.9230 handle, but also effectively trapped within its recent 1.9130–1.9267 range..
• The outlook for GBP/AUD suggests continued volatility as traders remain cautious amid evolving Middle East diplomatic efforts and UK inflation and growth concerns..
• British consumer price inflation held at 3.0% in February, unchanged from January's rate, official figures showed on Wednesday, ahead of a likely upward lurch as war in the Middle East pushes up prices..
• Technically, risks remain tipped to the downside as sterling remains stuck below its bruised 200-day moving average at 1.3434, despite several tests over the last two weeks.
• Immediate resistance is located at 1.9248 (38.2%fib), any close above will push the pair towards 1.9310(Higher BB).
• Strong support is seen at 1.8975 (SMA 20 ), and break below could take the pair towards 1.8761(23.6%fib).
Recommendation: Good to sell on around 1.9240 with stop loss of 1.9300 and target price of 1.9170
