FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(GBPUSD and CADJPY) for the day
FxWirePro: GBP/AUD runs out of steam but maintains bullish outlook
• GBP/AUD initially gained on Wednesday but lost some ground as hot UK consumer inflation data raised new worries over an economic slowdown in UK.
• Britain's headline inflation hit 9.1%, highest since March 1982. Britain's headline inflation rate in May was higher than in the United States, France, Germany and Italy.
• GBP/AUD approached to test resistance 1.7799 (23.6% fib) but retreated as GBP lost strength.
• Technical signals are bullish as RSI is bullish at 57, daily momentum studies 5 and 11 DMAs are trending north.
• Immediate resistance is located at 1.7790 ( 5DMA), any close above will push the pair towards 1.7799 (23.6% fib).
• Immediate support is seen at 1.7645 (5DMA) and break below could take the pair towards 1.7608(38.2%fib).
Recommendation: Good to buy around 1.7700, with stop loss of 1.7600 and target price of 1.7790