• GBP/AUD dipped on Wednesday investors digested Uk inflation data
• Consumer prices in April rose by an annual rate of 2.8%, compared with March's figures of 3.3% and expectations of 3.0%.
• That prompted some analysts to question the need for rapid rate hikes by the Bank of England, especially following Tuesday's data that showed the unemployment rate ticking up..
•. BoE Governor Andrew Bailey said a rise in market interest rates since the start of the Iran war has given the central bank more time to assess the economic effects of the conflict..
• Markets are pricing in just over 50 basis points of BoE tightening by December, down from around 60 bps on Tuesday.
• Immediate resistance is located at 1.8808 (SMA 20), any close above will push the pair towards 1.8889(38.2%fib).
• Immediate support is seen at 1.8567 (23.6%fib) and break below could take the pair towards 1.8506 (Lower BB).
Recommendation: Good to sell around 1.8820 with stop loss of 1.8900 and target price of 1.8700
