• GBP/ AUD rose sharply on Tuesday as hot U.S. inflation data boosted the pair.
• The U.S. consumer price index gained 0.1% last month after being unchanged in July. Economists polled by had forecast a dip of 0.1%.
• At GMT 17:55, the pair was trading up 0.59 percent at 1.7053 reversing course from daily low 1.6944(Daily low).
• Technical signals show the pair could gain more ground in the short-term as RSI is rising from below,while moving averages are trending higher.
• Immediate resistance is located at 1.7054( 21DMA), any close above will push the pair towards 1.7116 (38.2%fib).
• Immediate support is seen at 1.6985 (9DMA) and break below could take the pair towards 1.6912 (23.6%fib).
Recommendation: Good to buy around 1.7050, with stop loss of 1.6900 and target price of 1.7120
