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• GBP/AUD gained on Monday as hopes that EU and UK might agree a trade deal supported sterling.
• Investors will be looking for August gross domestic product on Friday. Before that are construction PMI on Tuesday and industrial production on Friday.
• At GMT 18:01, the pair was trading up 0.22 percent at 1.8088 after reaching daily low at 1.7989.
•Technical signals are bullish as RSI is at 55, daily momentum studies 5, 9 and 10 DMAs are trending up.
•On the upside, Immediate resistance is located at 1.8107 (61.8%fib ), any close above will push the pair towards 1.8233 (Higher BB).
•On the downside, strong support is seen at 1.7992 (11 DMA) and break below could take the pair towards 1.7939 (50% fib).
Recommendation: Good to buy on dips around 1.8050, with stop loss of 1.7900 and target price of 1.8150.
