• 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 tempora…
• 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
