FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURUSD and AUDUSD) for the day)
FxWirePro: GBP/AUD extends gains, faces 23.6%fib resistance
• GBP/ AUD rose sharply on Tuesday after the Reserve Bank of Australia (RBA) surprised markets with a smaller-than-expected interest rate increase.
• Reserve Bank of Australia (RBA) raised its cash rate to a nine-year peak of 2.60%.
• The pair currently is approaching resistance at 1.7674( 23.6%fib). A break above 23.6%fib would unmask 1.7700level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 55,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.7674( 23.6%fib), any close above will push the pair towards 1.7756 (Higher BB).
• Immediate support is seen at 1.7422 (38.2%fib) and break below could take the pair towards 1.7231 (50%fib).
Recommendation: Good to buy around 1.7600, with stop loss of 1.7500 and target price of 1.7700