FxWirePro: GBP/AUD extends gains, potential for bullish continuation

• GBP/AUD rose on Friday as the Australian dollar continued to weaken against the pound, amid speculation that the RBA could take a more dovish stance at next week's policy meeting.

• Data this week showing minimal growth in the Australian economy for the third quarter led markets to reduce the likelihood of an earlier rate cut by the Reserve Bank of Australia.

• Reserve Bank of Australia (RBA)is widely anticipated to keep rates steady at its December meeting.

• A daily close above 23.6%fib will further improve the technical outlook, and open the possibility of a rally towards 2.0050  level    
 
• Technical are bullish, daily RSI is  up at 69 , daily momentum studies  9 and 10 SMAs are trending north. 

• Immediate resistance is located at 1.9970 (23.6%fib ), any close above will push the pair towards 2.0042 (5th Aug high).

• Strong support is seen at 1.9822(38.2%fib ), and break below could take the pair towards 1.9712 (50%fib).

Recommendation: Good to buy  around 1.9930 with stop loss of 1.9830 and target price of 2.0050