• GBP/AUD rose on Monday as improving mood for Brexit trade talks supported pound.
• Pound has benefited largely from some sort of deal before the end of the transition period on Dec.31.
• Bulls on course to re test key 23.6% Fibo at 1.8144, Sustained 1.8144 break would target 1.8200
• Technical signals are bullish as RSI is at 56, daily momentum studies 5,9,11 DMA’s are trending up.
• On the upside, Immediate resistance is located at 1.8144 ( 38.2% fib), any close above will push the pair towards 1.8200 ( Psychological level).
• On the downside, strong support is seen at 1.8070(5 DMA) and break below could take the pair towards 1.8011 (50%fib).
Recommendation: Good to buy around 1.8070, with stop loss of 1.8000 and target price of 1.8200.
