GBP/AUD chart on Trading View used for analysis
- GBP/AUD breaks above 200W SMA, hits 7-month highs at 1..8485, bias higher.
- GBP buoyed as Brexit negotiations appear to be back on track after May's successful speech at the Conservative Party conference.
- Reports suggest Theresa May is inching towards a compromise on the Irish border issue and bulls are looking for this to finally break the deadlock.
- The pound could rally on any positive development on Brexit, while on the other side, the Australian dollar remains in a strong bear grip.
- Technical indicators on daily charts have turned bullish. The pair is on track to complete a "Three White Solders" pattern which adds to upside bias.
- RSI and Stochs are biased north. Bollinger Bands on daily charts are widening.
- Upside has broken stiff resistance at 200W SMA and close 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 1.8345 (200W SMA), retrace below could negate the bullish bias.
Support levels - 1.8345 (200W SMA), 1.83 (38.2% Fib), 1.8236 (5-DMA)
Resistance levels - 1.85 (Mar 2018 high), 1.1.8684 (Sept 2014 high), 1.9080 (50% Fib)
Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-AUD-finds-major-resistance-at-200W-SMA-at-18344-stay-long-on-decisive-break-above-1438612) is progressing well.
Recommendation: Watch out for close above 200W SMA to go long.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 172.468 (Bullish), while Hourly AUD Spot Index was at -129.187 (Bearish) at 0720 GMT.
For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
