• GBP/ AUD rose sharply on Thursday reports of a possible U-turn by the UK government on its fiscal plans lifted sterling.
• The pound surged as much as 2.04% percent versus Australian dollar after Sky News reported the British government is discussing making changes to the fiscal plan announced last month.
• The pair currently is approaching resistance at 1.8110( 23.6%fib). A break above 23.6%fib would unmask 1.8200 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 69 while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.8102( 23.6%fib), any close above will push the pair towards 1.8203 (Higher BB).
• Immediate support is seen at 1.7889(38.2%fib) and break below could take the pair towards 1.7707 (50%fib).
Recommendation: Good to buy around 1.8010, with stop loss of 1.7890 and target price of 1.8100
