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FxWirePro: GBP/AUD losses momentum but outlook is bullish


• GBP/AUD dipped on Tuesday as demand for antipodean currencies increased as a surge in commodity prices lifted Australian dollar.

• The pair was last trading 0.08% higher at 1.8686 slightly lower from daily  high at 1.8769.

• Any downside correction is likely to be temporary as barrier at 1.8664 (38.2%fib) is set to restricting lower move.

• Technical signals are bullish as RSI is at 66, daily momentum studies  5 DMA, 9 EMA are trending up. 

• Immediate resistance is located at 1.8709(Higher BB ), any close above will push the pair towards 1.8751 (23.6%fib).

• Strong support is seen at 1.8664 (38.2%fib) and break below could take the pair towards 1.8622 (9DMA).

Recommendation: Good to buy on dips around 1.8690 with stop loss of 1.8600 and target price of 1.8750.
 

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