FxWirePro: GBP/AUD dips below lower range, bearish bias increases

• GBP/AUD  dipped on Wednesday as Australian dollar firmed following hotter than expected Australian CPI data.

• Australian consumer prices rose more than expected in January, with core inflation reaching a more than one-year high, increasing the likelihood of another interest rate hike.

• Data from the Australian Bureau of Statistics showed the monthly CPI rose 0.4% in January from December, driven by higher housing, healthcare, and clothing costs.

• The trimmed mean core inflation rose 0.3% in the month, lifting the annual rate to a 16-month high of 3.4% from 3.3% in December, remaining above the RBA’s 2%–3% target range for a seventh consecutive month.

• Immediate resistance is located at 1.9132(Daily high), any close above will push the pair towards 1.9310(SMA 20).

• Strong support is seen at 1.9004 (23.6%fib) and break below could take the pair towards 1.8902 (Lower BB).

 Recommendation: Good to sell on  around 1.9050  with stop loss of 1.9100 and target price of 1.8930