• 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.
