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FxWirePro: GBP/AUD bulls lose traction, cannot add to overnight gains

• GBP/AUD retreated from daily high on Tuesday as Australian dollar gained on risk-on flows and higher commodity prices.

• GBP/AUD continues to trade sideways, bouncing between 1.8980 and 1.8880 range

• Any downside correction is likely to be temporary as barrier at 1.7086 (61.8% fib) is set to restricting lower move.

• Technical signals show   RSI is at 67 bullish , daily momentum studies 9, 10 and 11 DMAs are trending upwards.

• Immediate resistance is located at 1.8937 (23.6% fib), any close above will push the pair towards 1.8970 (Higher BB).

• Immediate support is seen at 1.8845 (38.2% fib) and break below could take the pair towards 1.8815 (9 DMA).

Recommendation: Good to buy on dips around 1.8850, with stop loss of 1.8800 and target price of 1.8920.
 

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