• GBP/ AUD strengthened on Monday as markets continued to digest the previous week's 25-basis-point rate increase by the Bank of England.
• Central bank expectations is supporting sterling, as inflation remains resilient in the UK economy, though any significant signs of a recession would undermine the pound.
• A rally towards 1.9550 is possible if GBP/ AUD bulls overcome resistance at 23.6%fib.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 58,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.9465 ( 23.6%fib), any close above will push the pair towards 1.9526 (Higher BB).
• Immediate support is seen at 1.9365 (5DMA) and break below could take the pair towards 1.9295 (38.2%fib).
Recommendation: Good to buy around 1.9440, with stop loss of 1.9380 and target price of 1.9550
