• GBP/AUD dipped on Wednesday as investors digested the latest British inflation data.
• U Annual consumer price inflation remained at 3.8% for the third month running, its joint highest since the start of 2024, the Office for National Statistics said on Wednesday.
• Investors are pricing in about a 75% chance that the Bank lowers interest rates by year-end, up from around a 46% chance before the data.
• GBP/AUD is likely to remain under pressure as traders assess the impact of below-forecast UK inflation data on interest rate expectation.
• Immediate resistance is located at 2.0734(Higher BB), any close above will push the pair towards 2.0824(50%fib).
• Immediate support is seen at 2.0556(38.2%fib) and break below could take the pair towards 2.0489(SMA 20).
Recommendation: Good to sell around 2.0600 with stop loss of 2.0700 and target price of 2.0500
