- GBP/AUD is trading in a 'Rising Wedge' pattern and price currently hovers around Wedge Top at 1.8295.
- Technical indicators are biased higher. RSI has edged above 70 levels and momentum studies are bullish.
- We see +ve DMI dominance and ADX is rising in support of the uptrend.
- Breakout at resistance at 1.8295 (Wedge Top) will likely propel the pair higher.
- Immediate resistance above 1.8295 lies at 1.8304 (38.2% Fib retrace of 2.2372 to 1.5789 fall).
- On the flipside, 5-DMA is immediate support, break below will see test of 20-DMA at 1.7892.
- Break below 20-DMA invalidates bullish bias.
Support levels - 1.8235 (5-DMA), 1.82, 1.8050 (Mar 19 low), 1.7892 (20-DMA)
Resistance levels - 1.8295 (Wedge Top), 1.8304 (38.2% Fib retrace of 2.2372 to 1.5789 fall)
Recommendation: Good to go long on decisive breakout above 1.8295, SL: 1.8115, TP: 1.8655/ 1.90
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -25.3013 (Neutral), while Hourly AUD Spot Index was at 50.9192 (Neutral) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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