FxWirePro: GBP/AUD consolidates cloud breakout, extends range trade after Carney's less hawkish comments

• GBP/AUD trades in a narrow range, up 0.12% on the day, bias higher.
   
• The pair is extending consolidation after cloud breakout in the previous week.
   
• Less than hawkish comments by BoE Governor Mark Carney on Monday keep GBP subdued.
   
• RBA minutes released earlier today showed the c.bank stressed the need to balance the risk of high household debt and low CPI.
   
• The policy makers reiterated the disinflationary impact of the strong Aussie dollar.
   
• GBP/AUD edged higher from session lows at 1.6911, finds strong support by daily cloud at 1.6871.
   
• We see weakness only on break below, scope then for test of 100-DMA at 1.6789.
   
• Oscillators are in highly overbought zone which calls for caution. But we do not see major signs of reversal.
   
• Next major resistance on the upside lies at 0.7083 (61.8% Fib retrace of 1.7650 to 1.6162 fall) ahead of 1.7123 (July 7 high).

Support levels - 1.69, 1.6871(cloud top), 1.6831 (5-DMA)

Resistance levels - 0.7083 (61.8% Fib retrace of 1.7650 to 1.6162 fall), 1.7110 (Apr 19th high), 1.7123 (July 7 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-capped-at-100-DMA-further-upside-only-on-break-above-901821) has hit all targets.

Recommendation: Book partial profits, raise trailing stop to 1.6870, hold for 1.70/ 1.7080/ 1.71

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 156.661 (Bullish), while Hourly AUD Spot Index was at -3.30019 (Neutral) at 0500 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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