• GBP/AUD declined sharply on Wednesday as sterling attracted sellers after below-forecast UK CPI encouraged a dovish shift in BoE expectations.
• British inflation unexpectedly kept constant at 4.0% in January, confounding projections for an increase.
• At GMT 19:35, the pair was trading down 0.78 percent at 1.9351 reversing course from daily low 1.9534(Daily high).
• Technicals are favouring bearish sentiment as RSI has tuned lower and the pair is trading below 21 and50-DMAs.
• Immediate resistance is located at 1.9515 (38.2%fib), any close above will push the pair towards 1.9613(Sep 7th high)
• Strong support is seen at 1.9344 (50% fib)and break below could take the pair towards 1.9234(Feb 4th low).
Recommendation: Good to sell around 1.9360, with stop loss of 1.9480 and target price of 1.9270
