• GBP/AUD strengthened on Monday as a survey of business activity in the UK indicated rising prices, suggesting ongoing inflationary pressures.
• The preliminary S&P Global Flash Composite Purchasing Managers' Index held at 50.5 in December, remaining just above the 50.0 line that separates growth from contraction.
• Looking ahead upcoming UK data includes jobs figures on Tuesday and CPI on Wednesday, which will influence the Bank of England's (BOE) decision.
• Technical are bullish, daily RSI is positive at 53, 11 and 14 SMAs are trending up.
• Immediate resistance is located at 1.9926(38.2%fib ), any close above will push the pair towards 2.0070 (23.6%fib).
• Strong support is seen at 1.9818(50%fib) and break below could take the pair towards 1.9700(50%fib).
Recommendation: Good to buy around 1.9900 , with stop loss of 1.9820 and target price of 1.9990
