• GBP/AUD dipped on Friday as grim UK retail sales knocked sterling down.
• Data showed UK retail sales slumped to 3.2% in December, biggest drop since Jan 2021.
• The decline in retail sales follows Wednesday's higher-than-expected UK inflation reading, which dampened expectations for early interest rate cuts by the Bank of England this year.
• The pair fell below 1.9300 but couldn't get lower than 1.9215.Today bulls have regained their footings.
• Immediate resistance is located at 1.9353 (23.6% fib ), any close above will push the pair towards 1.9425(Jan 18th low).
• Strong support is seen at 1.9215 (38.2% fib) and break below could take the pair towards 1.9109 (50% fib).
Recommendation: Good to buy around 1.9220, with stop loss of 1.9100 and target price of 1.9330
