• GBP/AUD strengthened on Tuesday as broad Australian dollar weakness helped the pound gain against antipodean currency.
• GBP/AUD hits session high at 1.8393. Investors awaited key US inflation data for clues on US inflation scenario.
• Heading into the US afternoon the pair was trading near session high,A close above the 1.8422 38.2%fib would add further bullish pressure.
• Technical signals are bullish as RSI is rising, daily momentum studies 5,9,11 DMA are trending north.
• Immediate resistance is located at 1.8412 (38.2%fib ), any close above will push the pair towards1.8482 (23.6%fib).
• Strong support is seen at 1.8353 (50%fib) and break below could take the pair towards 1.8296 (61.8%fib).
Recommendation: Good to buy on dips around 1.8350 with stop loss of 1.8280 and target price of 1.8450.
