FxWirePro: GBP/AUD breaks major trendline resistance at 1.7120, good to go long on dips

• GBP/AUD has broken major trendline resistance at 1.7120, we see scope for further gains.
   
• The pair is holding break above 200-DMA, we see weakness only on close below.
   
• Bullish RSI divergence adds to upside bias in the pair. Price action is holding above daily cloud and momentum studies are bullish.
   
• Technicals on weekly charts are also bullish, but weekly cloud base at 1.7478 is strong resistance.
   
• Break above will see upside upto 1.7750 and then 1.78 levels. Next immediate bull target likely at 1.76 (38.2% Fib retrace of 2.0530 to 1.5789 fall).
   
• 200-DMA at 1.6693 is major support on the downside, while immediate resistance is seen at 1.76 (38.2% Fib retrace of 2.0530 to 1.5789 fall).

Support levels – 1.7260 (5-DMA), 1.7120 (trendline), 1.6908 (23.6% Fib retrace of 2.0530 to 1.5789 fall), 1.6693 (200-DMA)

Resistance levels - 1.7412 (Sept 8 high), 1.76 (38.2% Fib), 1.7787 (July 22 2016 high), 1.78 (Sept 15 2016 high)

TIME  TREND INDEX  OB/OS INDEX    

1H          Bullish                Neutral       
4H          Bullish                Overbought        
1D          Bullish                Overbought        
1W         Bullish                 Neutral      

Recommendation: Good to go long on dips around 1.7375/80, SL: 1.7260, TP: 1.76/ 1.77/ 1.7780/ 1.78

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 7.10769 (Neutral), while Hourly AUD Spot Index was at -143.866 (Bearish) at 1200 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.