• GBP/AUD traded in tight range on Monday as investors focus turned to Wednesday’s UK CPI data.
• Consumer price index (CPI) for October, which economists polled by Reuters expect to have risen by 4.8% year on year, after September's 6.7% increase.
• At GMT 17:47, the pair was trading 0.04% higher at 1.9217, slightly lower from session high at 1.9242
• Technical signals are bullish as RSI is at 55, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.9262 (23.6%fib), any close above will push the pair towards 1.9300 (Oct 12th high).
• Strong support is seen at 1.9181(38.2%fib) and break below could take the pair towards 1.9148 (21DMA).
Recommendation: Good to buy on dips around 1.9200 with stop loss of .9120 and target price of 1.9270
