• GBP/AUD dipped on Thursday as the pair attracted sellers after the release of United States (US) inflation data.
• The CPI climbed 0.4% in August, the largest monthly rise since January, following a 0.2% increase in July, according to the Labor Department’s Bureau of Labor Statistics.
•Over the 12 months through August, the CPI rose 2.9%, the biggest annual gain since January, following a 2.7% increase in July.
• The pairs fall below the 2.0392 (38.2% fib)has increased the growing bearish strength, putting focus on support at 2.0240.
• Technicals are favouring bearish sentiment as RSI is at 30 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 2.0392 (38.2% fib), any close above will push the pair towards 2.0482 (50%fib)
• Strong support is seen at 2.0340 (Lower BB)and break below could take the pair towards 2.0240(23.6%fib).
Recommendation: Good to sell around 2.0390 with stop loss of 2.0460 and target price of 2.0300
