FxWirePro: GBP/AUD bulls need more gains to zero in on key fibo resistance

• GBP/AUD strengthened on Wednesday   as Australian dollar slipped lower   after inflation data surprised on the downside.

• In February, the Australian monthly Consumer Price Index (CPI) increased by 0.2% compared to January, maintaining the annual rate at a two-year low of 3.4%. Analysts had anticipated a rise to 3.5% or higher.

• A rally towards is   1.9400 level is  possible if  GBP/AUD bulls overcome resistance at 1.9375

• Technical signals are bullish as RSI is at 51, daily momentum studies  5 DMA, 9 EMA are trending up. 

• Immediate resistance is located at 1.9375(Daily high ), any close above will push the pair towards 1.9432(23.6%fib).

• Strong support is seen at 1.9318(Daily low) and break below could take the pair towards 1.9271 (38.2%fib).

Recommendation: Good to buy on dips around 1.9340 with stop loss of 1.9260  and target price of 1.9400