• GBP/AUD initially dipped but recovered ground as market awaited Key Australian CPI data for further direction.
• The first inflation data of the year will offer clearer guidance on whether the Reserve Bank’s recent cash rate hike was a one-off move or the start of further tightening..
• Australia will publish its January inflation data on Wednesday, with the Consumer Price Index (CPI) expected to rise 3.7% year-on-year, slightly below December’s 3.8% reading..
• January CPI is projected at 3.7%, while Trimmed Mean CPI is expected to hold steady at 3.3% year-on-year, unchanged from the previous month..
• Immediate resistance is located at 1.9270(38.2%fib), any close above will push the pair towards 1.9312(SMA 20).
• Strong support is seen at 1.9027 (23.6%fib) and break below could take the pair towards 1.8909 (Lower BB).
Recommendation: Good to sell on around 1.9120 with stop loss of 1.9180 and target price of 1.8930
