- GBP/AUD is extending break above 100W-SMA at 1.7502 last week, bias higher.
- The pair has hit fresh multi-month highs at 1.7996 and is on track to test 200W-SMA at 1.8420.
- Technical support upside, RSI on weekly charts shows strong momentum at 70 levels and is gaining traction.
- Momentum studies are bullish, Stochs are sharply higher, but hover in overbought territory so caution advised.
- Bulls now eye 38.2% Fib retrace of 2.2372 to 1.5789 fall at 1.8304 ahead of 200W SMA at 1.8420.
- On the flipside, retrace below weekly 100-SMA could see weakness, scope then for test of 20-DMA at 1.7571.
Support levels - 1.7805 (5-DMA), 1.7571 (20-DMA), 1.7473 (100W-SMA)
Resistance levels - 1.80, 1.8192 (June 27 week high), 1.8304 (38.2% Fib retrace of 2.2372 to 1.5789 fall), 1.8420 (200W SMA)
Recommendation: Stay long on dips, SL: 1.7470, target 1.82, 1.83/ 1.8420.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 160.587 (Bullish), while Hourly AUD Spot Index was at -66.4367 (Neutral) at 0600 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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