• GBP/AUD strengthened on Wednesday as Australian dollar weakened against pound after inflation report reinforced expectations for RBA to hold rates.
• Data released on Wednesday showed Australia's inflation accelerated in August but at a pace that was in line with expectations.
• The pair is holding near today's high, but repeated failures to push above 38.2% fib resistance is discouraging longs.
• Technicals are favouring bearish sentiment as RSI is at 38 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 1.9123 (38.2% fib), any close above will push the pair towards 1.9192(14DMA)
• Strong support is seen at 1.8950 (23.6% fib)and break below could take the pair towards 1.8875 (Lower BB).
Recommendation: Good to sell around 1.9115, with stop loss of 1.9250 and target price of 1.9000
