• GBP/ AUD pared early gains on Tuesday as mixed U.S inflation data did little to soothe concerns about further Fed tightening.
• U.S. consumer inflation accelerated in January, stoking expectations that the Federal Reserve is far from pausing its interest rate hiking cycle. The monthly reading was 0.5% from 0.1% in December.
• The pair inability to hold gains above 1.7493( 38.2%fib), may increases the likelihood of a drop towards1.9150 level.
• Technical outlook is bearish in short-term as RSI is trending down at 45,while moving averages are pointing south wards
• Immediate resistance is located at 1.7493( 38.2%fib), any close above will push the pair towards 1.7512 (30DMA).
• Immediate support is seen at 1.7383 (38.2%fib) and break below could take the pair towards 1.7260(23.6%fib).
Recommendation: Good to sell around 1.7430, with stop loss of 1.7520 and target price of 1.7350
