• GBP/ AUD strengthened on Monday as sterling firmed after European leaders agreed to draft a Ukraine peace plan for U.S. consideration and acknowledged the need to increase defense spending.
• Comments from Bank of England policymakers will be monitored midweek to gauge the appetite for further rate reductions.
• GBP/ AUD traded in range2.0238-2.0449, the pair was last trading up 0.02 percent at 2.0408.
• Technical signals show the pair could lose more ground in the short-term as RSI has turned higher.
• Immediate resistance is located at 2.0460 (23.6%fib), any close above will push the pair towards 2.0500(23.6%fib ).
• Immediate support is seen at 2.0289(50%fib) and break below could take the pair towards 1.9656 (61.8%fib).
Recommendation: Good to buy around 2.0380 with stop loss of 2.0250 and target price of 2.0500
