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FxWirePro: GBP/AUD under pressure after early buying dries up

• GBP/AUD initially gained on Friday but gains eroded as the pair failed to find strong direction as investors waited for the UK inflation data next week.

• Closely-watched consumer price inflation data is set to be released on Wednesday, followed by 'flash' PMI data on British business activity the next day.

• Technicals are favouring bearish sentiment as RSI is at 40 and the pair is trading below   5,10 & 11-DMAs. 

• Immediate resistance is located at 1.9020 (38.2% fib), any close above will push the pair towards 1.9100(May 3rd high)

• Strong support is seen at 1.8904 (23.6%fib) and break below could take the pair towards 1.8832(Lower BB).

Recommendation: Good to sell on rally around 1.8970, with stop loss of 1.9100   and target price of 1.8900
 

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