FxWirePro: EUR/GBP extends bounce off 200-DMA support, focus on UK Retail Sales and Eurozone Consumer Confidence for impetus
FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(USDCHF and CADJPY) for the day
FxWirePro: GBP/AUD consolidating around 1.9135, bias is bullish
• GBP/AUD rose on Friday as expectations BoE will hike interest rate next week boosted pound against weaker Australian dollar.
• BoE expectations are helping pound gain against low-yielding currencies as rates dominate FX pricing in post-pandemic markets
• The rallies above the 1.9200,lift stops after finding resistance zone at 1.8982 (50% fib).
• GBP/AUD remains bullish, only a break and daily close below 38.6% fib at 1.9449 will shift bias to the downside.
• Technicals are bullish, daily RSI rising, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9220 (23.6%fib ), any close above will push the pair towards 1.9278 (2nd Dec 2019 high).
• Strong support is seen at 1.9098 (38.2%fib )and break below could take the pair towards 1.8986 (50%fib).
Recommendation: Good to buy on around 1.9100, with stop loss of 1.9000 and target price of 1.9220