• GBP/AUD initially gained on Thursday but some erased some gains after UK budget plan announcement
• UK finance minister Jeremy Hunt announced tax increases and tighter public spending in an effort to restore the country's economic reputation and cool inflation.
• A rally towards bigger resistance in the 1.7940 zone is possible should GBP/AUD bulls overcome resistance at 1.7772(21 DMA).
• Technical are bullish as RSI is at 32, daily momentum studies 5, 10 and 21 DMAs are trending up.
• Immediate resistance is located at 1.7772(21 DMA),any close above will push the pair towards 1.7662 (5DMA ).
• Immediate support is seen at 1.7632 (5DMA) and break below could take the pair towards 1.7583 (38.2%fib)
Recommendation: Good to buy around 1.7720, with stop loss of 1.7600 and target price of 1.7820
