• GBP /AUD strengthened on Friday as increased risk appetite market benefited pound.
• Optimism over a downshift in aggressive monetary policy by the Fed and that China will gradually reopen its economy have bode well for riskier assets.
• The pairs rise above the 1.7917 (5DMA) has reinforced the growing bullish strength, putting focus on resistance at 1.8150 level.
• Technical signals are bullish as RSI is at 62, momentum studies, 5, 10 & 21 DMAs are trending up.
• Immediate resistance is located at 1.8134 (23.6% fib), any close above will push the pair towards 1.8204 (Higher BB).
• Immediate support is seen at 1.7917(5DMA) and break below could take the pair towards 1.7841 (38.2%fib).
Recommendation: Good to buy on dips around 1.8050, with stop loss of 1.7900 and target price of 1. 1.8150.
