• GBP/ AUD strengthened on Wednesday after data showed British consumer price inflation fell to a three-month low of 10.5% in December .
• British inflation eased last month, offering some comfort to the Bank of England, but food and drink prices rose at the fastest pace since 1977.
• The pair currently is approaching resistance at 23.6%fib. A break above will unmask 1.7800 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 51,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.7808(23.6%fib), any close above will push the pair towards 1.7914 (29th Dec high).
• Immediate support is seen at 1.7630 (38.2%fib) and break below could take the pair towards 1.7524 (50%fib).
Recommendation: Good to buy around 1.7720, with stop loss of 1.7650 and target price of 1.7800
