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

• GBP/ AUD   pared  early gains on Tuesday  as mixed U.S inflation data did little to soothe concerns about further Fed tightening.

• U.S. consumer inflation accelerated in January, stoking expectations that the Federal Reserve is far from pausing its interest rate hiking cycle. The monthly reading was 0.5% from 0.1% in December.

• The pair inability to hold gains above 1.7493( 38.2%fib), may increases the likelihood of a drop towards1.9150 level.

• Technical outlook is  bearish in short-term as RSI is trending down at 45,while  moving averages are pointing south wards

• Immediate resistance is located at 1.7493( 38.2%fib), any close above will push the pair towards 1.7512 (30DMA).

• Immediate support is seen at 1.7383 (38.2%fib) and break below could take the pair towards 1.7260(23.6%fib).

Recommendation: Good to sell around 1.7430, with stop loss of 1.7520 and target price of 1.7350

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