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FxWirePro:GBP/AUD rallies to 1-month high, good to buy on dips

• GBP/ AUD rose higher on Monday as knock-on effect from China Covid lockdown's weighed Australian dollar.

• Australian dollar underperformed  against pound as protests against COVID restrictions in China knocked market sentiment.

• At GMT 16:45, the pair was trading 0.55% higher at 1.7996, higest since Oct 31st.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 62,while moving averages and MACD are trending higher. 

• Immediate resistance is located at 1.8073( 23.6%fib), any close above will push the pair towards 1.8188 (Higher BB).

• Immediate support is seen at 1.7915 (5DMA) and break below could take the pair towards 1.7740(38.2%fib).

Recommendation: Good to buy around 1.7980 with stop loss of 1.7900 and target price of 1.8100
 

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