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FxWirePro: GBP/AUD uptrend gains momentum but hurdles ahead

• GBP/AUD strengthened on Monday  as   sterling  kept  firm tone  ahead of UK CPI.

• UK CPI is expected to show that the annual headline CPI fell to 2.1% in April, down from 3.2% in March.

• The core CPI, which excludes volatile items like food and energy prices, is estimated to have decreased to 3.7% in April from 4.2% the previous month.

• A rally towards is   1.9150 level is  possible if  GBP/AUD bulls overcome resistance at 38.2%fib.

• Immediate resistance is located at 1.9075(38.2%fib ), any close above will push the pair towards 1.9198(Higher BB).

• Strong support is seen at 1.8993 (50%fib) and break below could take the pair towards 1.8900 (61.8%fib).

Recommendation: Good to buy on dips around 1.9030 with stop loss of 1.8900 and target price of 1.9100
 

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