• GBP/ AUD strengthened on Wednesday after data showed British core inflation stayed strong in July.
• British core inflation stayed strong in July,core inflation in Britain, which strips out volatile energy and food prices, remained at 6.9% in July, flat versus the June reading.
• A rally towards is 1.9850 possible if GBP/ AUD bulls overcome resistance at 23.6%fib
• Technical signals show the pair could gain more ground in the short-term as RSI is at 70,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.9812(23.6%fib), any close above will push the pair towards 1.9879(Higher BB).
• Immediate support is seen at 1.9605 ( 5DMA) and break below could take the pair towards 1.9562 (38.2%fib).
Recommendation: Good to buy around 1.9750, with stop loss of 1.9550 and target price of 1.9850
