• GBP/ AUD strengthened on Wednesday as Australian dollar weakened in wake of softer than expected CPI data.
•Australian data showed annual growth in the consumer price index (CPI) slowed to 6.8% in February, from 7.4% the month before and under market forecasts of 7.1%.
• A rally towards 1.8550 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 71,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.8506( 23.6%fib), any close above will push the pair towards 1.8582 (Higher BB).
• Immediate support is seen at 1.8412 (5DMA) and break below could take the pair towards 1.8310(38.2%fib).
Recommendation: Good to buy around 1.8460, with stop loss of 1.8340 and target price of 1.8550
