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FxWirePro: GBP/AUD bounces off 55-EMA support, focus on BoE and RBA meetings for clear direction

GBP/AUD chart on Trading View used for analysis

  • GBP/AUD bounces-off 55-EMA support, we see weakness only on break below.
     
  • Sterling dented slightly amid the stalemate situation over the Irish backstop coupled with disappointing UK construction PMI data.
     
  • The final UK PMI came in at a 10-month low level of 50.6 in January, down from 52.8 recorded in December.
     
  • Technical studies are supportive for further upside. Dips can be used to go long. Weakness only below 55-EMA.
     
  • Focus now on BoE and RBA monetary policy meetings for clear direction.

Support levels - 1.8066 (21-EMA), 1.7957 (55-EMA), 1.7881 (200-DMA)

Resistance levels - 1.8097 (5-DMA), 1.8147 (61.8% Fib), 1.8284 (Jan 3 high)

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex
 

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