• GBP/AUD initially gained on Tuesday but lost some ground ahead of Wednesday's highly anticipated July U.S. CPI report.
• Forecasts for CPI are mixed, but focus is on too-high core rates.Another 75bp Fed hike is favored before smaller hikes thereafter.
• Technical signals are mixed as RSI is rising from low, daily momentum studies 5,11 and 14 DMAs are trending down.
• Immediate resistance is located at 1.7388 ( 14DMA), any close above will push the pair towards 1.7477 (38.2% fib)
• Immediate support is seen at 1.7266 (23.6% fib) and break below could take the pair towards 1.7240(Lower BB).
Recommendation: Be on sidelines
