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FxWirePro: GBP/AUD consolidates above 1.8800 after early fall, maintains bullish bias

• GBP/AUD initially dipped on Wednesday on higher commodity prices but recovered  ground as investors ramped up expectations of further rate rise  by BoE.

• GBP has been consolidating of late against Australian dollar on increased expectation BoE is expected to hike a further 25bps on Feb 3.

• Currently, the 1.8781 (50% fib) barrier is restricting lower move, will likely be  a speed bump to bears.

• Technical signals are bullish as RSI is at 59, daily momentum studies  5, 9 and 10 DMAs are trending north. 

• Immediate resistance is located at 1.8851 (38.2% fib), any close above will push the pair towards 1.8936(23.6%fib).

• Strong support is seen at 1.8781 (50% fib) and break below could take the pair towards 1.8740(14DMA).

Recommendation: Good to buy on dips around 1.8800, with stop loss of 1.8700 and target price of 1.8880
 

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