• GBP/AUD extended its yesterday’s bounce as optimism that British and EU trade negotiators could find common ground on Bexit talks lifted the pair.
•The pair tests 23.6% fib at 1.8133, retreats towards 1.8053 after failing to break above .
• Any downside correction is likely to be temporary as barrier at 1.7914 (23.6% fib) is set to restrict lower move.
• Technical signals are mixed as RSI turning up, momentum studies, 5, 10 & 21 DMAs conflict - neutral setup.
• On the upside, Immediate resistance is located at 1.8113 ( 23.6% fib), any close above will push the pair towards 1.8000 ( 5 DMA).
• On the downside, strong support is seen at 1.8000 ( 5 DMA)and break below could take the pair towards 1.7914 (23.6% fib).
Recommendation: Good to buy around 1.8000, with stop loss of 1.7900 and target price of 1.8150.
