• GBP/AUD declined sharply on Wednesday as investors digested soft UK GDP and US CPI data.
• The Office for National Statistics reported that UK GDP remained unchanged in April compared to the previous month, marking a slowdown from the 0.4% growth observed in March.
• Data showed US Consumer price index was unchanged in May.CPI increased 3.3% on year-on-year basis, core CPI rose 0.2%; up 3.4% on year-on-year basis.
• Technicals are favouring bearish sentiment as RSI is at 49 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 1.9213 (50% fib), any close above will push the pair towards 1.9290 (61.8%fib)
• Strong support is seen at 1.9136 (38.2% fib)and break below could take the pair towards 1.9045 (23.6% fib).
Recommendation: Good to sell around 1.9180, with stop loss of 1.9280 and target price of 1.9120
