• GBP/AUD initially gained on Friday but gains eroded as the pair failed to find strong direction as investors waited for the UK inflation data next week.
• Closely-watched consumer price inflation data is set to be released on Wednesday, followed by 'flash' PMI data on British business activity the next day.
• Technicals are favouring bearish sentiment as RSI is at 40 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 1.9020 (38.2% fib), any close above will push the pair towards 1.9100(May 3rd high)
• Strong support is seen at 1.8904 (23.6%fib) and break below could take the pair towards 1.8832(Lower BB).
Recommendation: Good to sell on rally around 1.8970, with stop loss of 1.9100 and target price of 1.8900
