• GBP /AUD rose higher on Wednesday after data showed UK inflation surged to a 10-year high last month, backing expectations of an interest rate hike as early as next month.
• UK consumer prices rose faster than expected by 4.2% last month from 3.1% in September as household energy bills skyrocketed.
• The pair rose above 1.8500 and was last trading at 1.8562 at (GMT 17:31).
• Technically, the GBP /AUD outlook remains strongly positive as 5, 10 and 21 daily moving averages trending upwards, and while RSI is strongly bullish at 60.
• Immediate resistance is located at 1.8562 (38.2% fib), any close above will push the pair towards 1.8667 (23.6%fib).
• Immediate support is seen at 1.8486 (50%fib) and break below could take the pair towards 1.8405 (61.8%fib).
Recommendation: Good to buy on dips around 1.8550, with stop loss of 1.8400 and target price of 1.8680
