- 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
The material has been provided by InstaForex Company – www.instaforex.com