• GBP/AUD initially gained but gave up ground on Wednesday as investors digested hotter than expected Australian CPI data and UK budget
•Australian consumer inflation accelerated for a fourth straight month in October, a new data series showed on Wednesday, prompting markets to scale back expectations of further policy easing and even price in the risk of a rate hike.
•Data from the Australian Bureau of Statistics showed Australia’s monthly consumer price index rose 3.8% year-on-year in October, the highest in 10 months and above the median forecast of 3.6%.
• British finance minister Rachel Reeves delivered a budget that will give her more room for meeting her borrowing targets, whichcalmed investor nerves.
• Immediate resistance is located at 2.0450(Higher BB), any close above will push the pair towards 2.0484(50%fib).
• Immediate support is seen at 2.0246(38.2%fib) and break below could take the pair towards 2.0196(SMA 20).
Recommendation: Good to buy 2.0300 with stop loss of 2.0190 and target price of 2.0380
