FxWirePro: Strong resistance for GBP/AUD at 2.0940, good to sell rallies
Pound regained lost momentum against majors after better than expected inflation figures from the UK. The UK CPI for December inched higher from 0.0% to 0.1% m/m, while on yearly basis, the figures improved to 0.2% from …
Pound regained lost momentum against majors after better than expected inflation figures from the UK.
The UK CPI for December inched higher from 0.0% to 0.1% m/m, while on yearly basis, the figures improved to 0.2% from 0.1% previously. The core gauge accelerated from 1.2% to 1.4% y/y.
GBP/AUD spiked to 2.0750 post data, but spike was quickly faded, the pair now trades at 2.0685.
The pair has been trading a falling channel since August, 2.0940 is strong resistance, daily cloud also weighs on the topside.
The pair has immediate resistance at 2.0838 (cloud base) and then at 2.0940 (channel top), while immediate support on the downside is located at 2.0613 (Jan 18 lows).
Recommendation: Good to sell rallies in the pair around 2.0700, SL: 2.0940, TP: 2.0480/2.0350
