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• GBP/AUD strengthened on Monday as stability returned to the UK currency as traders look ahead to Wednesday's budget.
• British finance minister Jeremy Hunt will announce his budget on Wednesday.Investors expect a raft of policy announcements, including a radical scheme to help first-time home buyers.
• A rally towards is 1.9550 level is possible if GBP/AUD bulls overcome resistance at 1.9491(23.6%fib ).
• Technical signals are bullish as RSI is at 66, daily momentum studies 5 DMA, 9 EMA are trending up.
• Immediate resistance is located at 1.9491(23.6%fib ), any close above will push the pair towards 1.9539(Higher BB).
• Strong support is seen at 1.9369(Daily low) and break below could take the pair towards 1.9330 (38.2%fib).
Recommendation: Good to buy on dips around 1.9480 with stop loss of 1.9400 and target price of 1.9560
