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FxWirePro: GBP/AUD Steadies above 1.8900 after early weakness, good to buy on dips

• GBP/AUD recovered some ground on Monday after initially falling on geopolitical worries  as upbeat UK  service PMI data supported pound.

• GBP/AUD fell as low as 1.8855 before buyers returned.  Support at 1.8867   holding   but break would warn of correction.

• Technical signals are bullish as RSI is at 51, daily momentum studies 5,10 and 11 DMAs are trending up.

•  Immediate resistance is located at 1.8924( 38.2%fib), any close above will push the pair towards 1.9000(23.6%fib)

• Support is seen at 1.8867 (50% fib ) and break below could take the pair towards 1.8805 (61.8% fib).

Recommendation: Good to buy   around   1.8900, with stop loss of 1.8800 and target price of 1.8980.

 

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