• GBP/AUD strengthened on Monday as disappointing Chinese economic data and lower oil prices weighed on Australian dollar.
• Data on Monday showing a sharp reduction in production, consumption and investment activity in China amid new COVID-19 outbreaks in the country
• The is pair heading towards the 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical are bullish, daily RSI is bullish at 63, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.8934 (Daily high ), any close above will push the pair towards 1.8968(23.6%fib).
• Strong support is seen at 1.8865(38.2%fib ), and break below could take the pair towards 1.8875(50%fib).
Recommendation: Good to buy around 1.8860, with stop loss of 1.8750 and target price of 1.8960
