• GBP/AUD strengthened on Wednesday as investors were undaunted by lack of Brexit talks progress.
• Sterling has diversified its gains of late despite concern about stalled EU-UK trade negotiations.
• Bullish outlook is likely to hold firm, bears need to break below 1.8000 psychological level to regain downward momentum.
• Technical signals are bullish as RSI is at 64.45, daily momentum studies 5, 9 and 10 DMAs are trending north.
• On the upside, Immediate resistance is located at 1.8127 (50% fib ), any close above will push the pair towards 1.9235 (38.2% fib).
• On the downside, strong support is seen at 1.8024 (61.8% fib) and break below could take the pair towards 1.8000 (Psychological level).
Recommendation: Good to buy on dips around 1.8070, with stop loss of 1.7980 and target price of 1.8150.
