- GBP/AUD has paused upside and has retraced below 38.2% Fib retrace of 2.0530 to 1.5789 fall at 1.76.
- Focus now on the BoE’s monetary policy committee meeting where the central bank is expected to keep rate unchanged.
- Also, UK manufacturing production for March, due for release on 11th will be eyed for further direction.
- The pair is holding break above 200-DMA, we see weakness only on close below.
- Bullish RSI divergence adds to upside bias in the pair. Price action is holding above daily cloud and momentum studies are bullish.
- Technicals on weekly charts are also bullish, but weekly cloud base at 1.7478 is strong resistance.
- Break above will see upside upto 1.7750 and then 1.78 levels.
Resistance levels – 1.76 (38.2% Fib), 1.78 (trendline), 1.8160 (50% Fib)
Support levels - 1.7469 (5-DMA), 1.7120 (trendline), 1.7076 (20-DMA)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-breaks-major-trendline-resistance-at-17120-good-to-go-long-on-dips-681136) has hit TP1.
Recommendation: Book partial profits at highs. Raise trailing stops to 1.7370. Hold for upside
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 5.47501 (Neutral), while Hourly AUD Spot Index was at 1.1415 (Neutral) at 1120 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
