• GBP/ AUD strengthened on Wednesday as sterling was supported by lofty UK inflation data.
• Data on Wednesday showed consumer prices rose by an annual 10.1%,down from 10.4% in February but well above the 9.8% forecast by economists.
• A rally towards 1.8650 is 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 57,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.8567( 23.6%fib), any close above will push the pair towards 1.8673 (Higher BB).
• Immediate support is seen at 1.8484 (21DMA) and break below could take the pair towards 1.8400(38.2%fib).
Recommendation: Good to buy around 1.8510 with stop loss of 1.8450 and target price of 1.8590
