• GBP/ AUD edged higher on Monday but gains were limited as UK bank holiday, end of summer liquidity kept flows relatively light.
• Above-target UK inflation and continued BoE hikes are likely to remain key support for sterling amid the current high-for-longer Fed rate outlook.
• GBP/ AUD traded in range 1.9572-1.9637, the pair was last trading up 0.08 percent at 1.9600.
• Technical signals show the pair could gain more ground in the short-term as RSI bullish at 56.
• Immediate resistance is located at 1.9696 (Aug 15th high), any close above will push the pair towards 1.9774(23.6%fib).
• Strong support is seen at 1.9546 (38.2% fib) and break below could take the pair towards 1.9442 (30DMA )
Recommendation: Good to buy around 1.9600 , with stop loss of 1.9500 and target price of 1.9700
