• GBP/AUD rose higher on Monday as sterling gained ground on risk-on flows and UK Conservatives vying to replace Boris Johnson as prime minister.
• In a data heavy week, traders will also be watching retail sales and flash PMIs figures in Britain, while,the race to become Britain's next prime minister was at full steam on Monday.
• The pair currently is approaching resistance at 38.2%fib. A break above would unmask 1.7500 level in the short term.
• Technical signals are bullish as RSI is at 50, daily momentum studies 5, 9 and 11 DMAs are trending north.
• Immediate resistance is located at 1.7561 (38.2%fib ), any close above will push the pair towards 1.7601 (21DMA).
• Strong support is seen at 1.7465 (Lower BB) and break below could take the pair towards 1.7407 (50% fib).
Recommendation: Good to buy on dips around 1.7500, with stop loss of 1.7400 and target price of 1.7590.
