• GBP /AUD rally extended above 1.7800 on Wednesday as pound was supported by Brexit optimism.
• Upbeat new possible Brexit deal before the year-end has helped the pound strengthen over 2% against the Australian dollar this week.
• The pair hit daily high at 1.7857 and was last trading at 1.8078 at (GMT 19:28).
• The pairs rise above the 1.7800 has reinforced the growing bullish strength, putting focus on resistance at 1.8024(23.6%fib).
• Technical signals favours bullish sentiment, RSI is sharply rising and pair trades above 5 & 9-DMAs.
• Immediate resistance is located at 1.7921 (38.2% fib), any close above will push the pair towards 1.8019 (23.6%fib% fib).
• Immediate support is seen at 1.7839 (50% fib) and break below could take the pair towards 1.7766 (61.8% fib).
Recommendation: Good to buy on dips around 1.7800, with stop loss of 1.7700 and target price of 1.7890.
