GBP/AUD chart on Trading View used for analysis
- GBP/AUD spikes higher on the day, trades 0.54% higher at the time of writing.
- UK PM May came out victorious from the Conservative Conference after crushing the rebellion.
- Analysts feel that May now has more room to offer a considerable compromise that may result in a Brexit deal that is favorable for the economy.
- Markets have priced in a lot of bad news - including talk of a "no-deal" Brexit. The pound could rally on any positive development.
- On the other side, the Australian dollar remains in a strong bear grip, supporting upside in the pair.
- Technical indicators on daily charts are turning slightly bullish. RSI and Stochs are biased north.
- Upside finds stiff resistance at 200W SMA at 1.8344. Break above will propel the pair higher.
- Next major resistance lies at 1.8684 (Sept 2014 high) ahead of 50% Fib at 1.9080.
- Immediate support lies at 1.8135, while 200-DMA at 1.7830 is major support.
Support levels - 1.8135 (5-DMA), 1.8094 (21-EMA), 1.7830 (200-DMA)
Resistance levels - 1.8344 (200W SMA), 1.1.8684 (Sept 2014 high), 1.9080 (50% Fib)
Recommendation: Watch out for decisive break above 200W SMA to go long, SL: 1.7830, target 1.8684/ 1.9080.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 55.8098 (Neutral), while Hourly AUD Spot Index was at -136.211 (Bearish) at 0945 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
