• GBP/AUD retreated slightly from highs on Tuesday as the pair ran into resistance after ticking up from 1.8461.
• GBP/AUD has been consolidating of late, partly on vaccine success and optimism on UK’s reopening plans.
• Markets focus is on the Bank of England meeting on Thursday. No policy change is expected by bank of England
• GBP/AUD remains bullish, only a break and daily close above 50% fib at 1.8319 will shift bias to the downside.
• Immediate resistance is located at 1.8529 (23.6%fib ), any close above will push the pair towards 1.8600(Psychological level).
• Strong support is seen at 1.8444 (5DMA) and break below could take the pair towards 1.8415 (38.2% fib).
Recommendation: Good to buy on dips around 1.8470, with stop loss of 1.8400 and target price of 1.8560.
