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FxWirePro:GBP/AUD falls on softer than expected UK CPI data, plunge to test a key fibo grows

• GBP/AUD declined sharply on Wednesday   as sterling attracted sellers after below-forecast UK CPI encouraged a dovish shift in BoE expectations.

• British inflation unexpectedly kept constant at 4.0% in January, confounding projections for an increase.

• At GMT 19:35, the pair was trading down 0.78 percent  at 1.9351 reversing course from daily low  1.9534(Daily high).

• Technicals are favouring bearish sentiment as RSI has tuned lower and the pair is trading below   21 and50-DMAs.

• Immediate resistance is located at 1.9515 (38.2%fib), any close above will push the pair towards 1.9613(Sep 7th high)

• Strong support is seen at 1.9344 (50% fib)and break below could take the pair towards 1.9234(Feb 4th low).

Recommendation: Good to sell  around 1.9360, with stop loss of  1.9480  and target price of  1.9270

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