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FxWirePro: GBP/AUD uptrend gains momentum after hotter-than-expected UK inflation data,good to buy on dips

• GBP/NZD strengthened  on  Wednesday as above  forecast   UK inflation data supported sterling .

• Data showed British annual consumer price inflation held at an 18-month low of 6.7% in September, while the core inflation fell less than expected, raising fears of another BoE rate hike.

• GBP/NZD is approaching resistance  at 38.2% fib, break above will give further momentum to bulls, opening the way for a run towards 2.0800 level.

•  From a technical viewpoint, the moving averages are pointing upwards, while the RSI  is   strongly bullish at 55.

• Immediate resistance is located at 2.0763 (38.2% fib), any close above will push the pair towards 2.0878 (23.6% fib).

• Strong support is seen at 2.0673 (50% fib) and break below could take the pair towards 2.0578 (61.8% fib).

Recommendation: Good to buy    around 2.0680, with stop loss of 2.0520 and target price of 2.0760

 

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