FxWirePro: GBP/AUD bulls undeterred, eyes 23.6%fib resistance

• GBP/AUD extended its yesterday’s bounce  as  weaker Australian dollar and increased expectation the Bank of England will raise interest rates next month boosted the pair.

• Any downside correction is likely to be temporary as barrier at 1.8833(38.2%fib) is set to restricting lower move.

• Technical signals are bullish as RSI is at 68, daily momentum studies  5  , 11,21 DMA’s are trending up. 

• Immediate resistance is located at 1.8918 ( 23.6%fib), any close above will push the pair towards 1.8961 ( 20th Sep high).

• Strong support is seen at 1.8833(38.2%fib) and break below could take the pair towards 1.8767 (50%fib).

 Recommendation: Good to buy around 1.8850, with stop loss of 1.8750 and target price of 1.8980