• GBP/AUD dipped on Monday but downtrend was limited as investors positioned themselves ahead U.S. inflation data due later on Tuesday.
• The centrepiece event for the week is the release of U.S. CPI data on Tuesday. UK inflation data will also be released later this week.
• The current mild downward pressure is deemed intact as long as the pair does not move above 50% fib resistance.
• Technical signals are strongly bearish as RSI is at 53, 5, 9,11 DMAs are trending up.
• Immediate resistance is located at 1.7467(50% fib), any close above will push the pair towards 1.7498 (21DMA).
• Strong support is seen at 1.7375 (38.2% fib) and break below could take the pair towards 1.7324 (Jan 25th low).
Recommendation: Good to sell on around 1.7420, with stop loss of 1.7500 and target price of 1.9320
