- GBP/AUD extends grind above 100-week SMA at 1.7501, bias higher.
- The pair is trading with a strong bullish bias, momentum studies are highly bullish.
- RSI on weekly charts shows strong momentum at 67 levels and is gaining traction.
- Continuation of bullish momentum finds next major resistance at weekly cloud at 1.7833.
- Break above weekly cloud could see test of 38.2% Fib retrace of 2.2372 to 1.5789 fall at 1.8304.
- Rejection and retrace below weekly 100-SMA could see weakness, scope then for test of 20-DMA at 1.7324.
Support levels - 1.7527 (5-DMA), 1.7343 (23.6% Fib retrace of 2.2372 to 1.5789 fall), 1.7324 (20-DMA), 1.73
Resistance levels - 1.7650 (May 2017 high), 1.7802 (Sept 15 high), 1.7833 (weekly cloud), 1.8304 (38.2% Fib)
Recommendation: Good to go long on dips around 1.75/ 1.7530, SL: 1.7325, TP: 1.76/ 1.7650/ 1.77/ 1.78/ 1.7830.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 74.6924 (Neutral), while Hourly AUD Spot Index was at -92.7812 (Bearish) at 0340 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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