• GBP /AUD strengthened on Monday as improved risk appetite and short covering supported sterling.
• The pair is holding near today's high, repeated failures to close below 1.8577 (38.2%fib) support is bullish sign.
• Technical signals are bullish as RSI is at, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.8577 (38.2%fib), any close above will push the pair towards 1.8643(20th Dec high).
• Immediate support is seen at 1.8509(50%fib) and break below could take the pair towards 1.8437 (61.8%fib).
Recommendation: Good to buy on dips around 1.8570, with stop loss of 1.8500 and target price of 1.8630.
