GBPAUD Chart Technical Outlook set to bounce as Markets Digest soft Australian inflation
Both the Australian Dollar and the British Pound are under pressure. Fears of a not-so-pleasant US inflation report boost the Greenback, and all other currencies suffer.
I expect the Australian Dollar to struggle more than the Pound. Why? Australia reported a lower-than-expected inflation figure, indicating looser monetary policy by the Reserve Bank of Australia (RBA). That gives the Aussie a small edge.
On the other hand, the Bank of England might signal it continues battling inflation. Governor Andrew Bailey is set to appear in parliament, and he could boost the Pound.
GBP/AUD is trading in the range, and it has resistance at 1.9035. I expect a gradual rise toward tat level. The next line to watch is 1.9175. Support is at 1.8895, followed by 1.8760.
