FxWirePro: GBP/AUD falls below 1.9900 level,scope for further downside

• GBP/AUD slipped lower on Wednesday as investors digested mixed UK inflation signals and a mild shift in Bank of England easing outlooks.

• UK inflation climbed above expectations in December on higher airfares and tobacco prices, but is likely to moderate toward the 2% target as utility price effects roll off..

•The ONS said annual CPI inflation rose to 3.4% in December from 3.2% in November, beating expectations of 3.3%..

•Consumer prices rose 0.4% month-on-month, reversing November’s 0.2% decline and matching forecasts.

. • Investors kept rate-cut expectations unchanged as closely watched services inflation rose in line with forecasts.

• Immediate resistance is located at 2.0066(SMA 20), any close above will push the pair towards 2.0118(38.2%fib).

• Immediate support is seen at 1.9837(23.6%fib) and break below could take the pair towards 1.9786(Lower BB).

Recommendation: Good to sell around 1.9870 with stop loss of 2.0050 and target price of 1.9750