• GBP/AUD strengthened on Wednesday as Australian dollar weakened as risk aversion gripped markets after weak German & US data spooked investors.
• At GMT 18:56, the pair was trading 0.17% higher at 1.8427 after hitting daily high at 1.8437.
• GBP/AUD bulls confidence is running high, a test of the 1.8502 (Higher BB) highly seem s likely.
• From a technical viewpoint, RSI is strongly bullish at 58, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.8444 (38.2%fib), any close above will push the pair towards 1.8502 (Higher BB).
• Immediate support is seen at 1.8381(50%fib) and break below could take the pair towards 1.8325 (61.8%fib).
Recommendation: Good to buy on dips around 1.8410, with stop loss of 1.8300 and target price of 1.8480
