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FxWirePro: GBP/AUD consolidates above daily cloud, weakness only on break below 50-DMA

GBP/AUD is trading in an extremely narrow range, intraday bias remains neutral. The pair is consolidating break above daily Ichimoku cloud, scope for further upside. Strong UK labour market data giving the sterling an ad…

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FxWirePro: GBP/AUD consolidates above daily cloud, weakness only on break below 50-DMA
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  • GBP/AUD is trading in an extremely narrow range, intraday bias remains neutral.
     
  • The pair is consolidating break above daily Ichimoku cloud, scope for further upside.
     
  • Strong UK labour market data giving the sterling an added boost. Technical indicators also support upside.
     
  • The pair is extending gains after bouncing off 50-DMA support. We see resumption od downside only on break below.
     
  • On the upside we see scope for test of 1.80 levels. Immediate resistance lies at 0.78 (78.6% Fib retrace of 0.79966 to 1.70980 fall).


Support levels - 1.76, 1.7512 (5-DMA), 1.7459 (50-DMA) 

Resistance levels - 1.78 (78.6% Fib retrace of 0.79966 to 1.70980 fall), 1.7894 (88.6% Fib), 1.80 (Dec 8 high)

Recommendation: Good to go long on dips around 1.76/1.7620, SL: 1.75, TP: 1.78/ 1.79/ 1.80

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 85.0501 (Bullish), while Hourly AUD Spot Index was at 62.4487 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex. 

FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
 

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