FxWirePro: GBP/AUD trades lower amid cooling UK inflation

• GBP/AUD dipped on as Wednesday investors assessed UK inflation print ahead of central BoE meeting , while Middle East tensions dampened sentiment.

• British inflation slowed in May, in line with Bank of England expectations, with the central bank widely expected to hold interest rates steady at Thursday’s meeting..

• Consumer prices rose 3.4% year-on-year in May, the Office for National Statistics reported Wednesday, matching economists’ expectations.

• Investor attention is firmly on the Bank of England’s policy meeting on Thursady, with markets widely expecting the central bank to hold interest rates steady following May's cooling inflation data

• The BoE, which cut rates by 25 basis points in May, may signal further easing is possible depending on how inflation and growth evolve.

• Immediate resistance is located at 2.0747(June 19th high), any close above will push the pair towards 2.0866(50% fib).

• Strong support is seen at 2.0572(61.8% fib) and break below could take the pair towards 2.0492(May 5th low).

Recommendation: Good to buy   around 2.0600, with stop loss of 2.0520 and target price of 2.0730