FxWirePro: GBP/AUD bullish outlook with scope to target 1.8950
• GBP/AUD strengthened on Tuesday as downtrend in new UK COVID cases buoyed sterling against Australian dollar.
• Data on Tuesday showed new COVID-19 cases in Britain had fallen for sixth consecutive day.
• At GMT 16:05, the pair was last trading up 0.87 percent at 1.8869,higest level since 18th May 2020.
• Technical signals are bullish as RSI is at 76, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.8862(Daily high ), any close above will push the pair towards 1.8903 (23.6%fib).
• Strong support is seen at 1.8787 (38.2%fib) and break below could take the pair towards 1.8699 (50%fib).
Recommendation: Good to buy on dips around 1.8840, with stop loss of 1.8760 and target price of 1.8950