• GBP/AUD strengthened on Thursday as Australian dollar continued to be weighed down by RBA’s dovish rate expectations.
• The Reserve Bank of Australia's December meeting minutes showed that the board plans to keep policy restrictive for now but may consider easing as early as February.
• A rally towards is 2.0250 level is possible if GBP/AUD bulls overcome resistance at 23.6%fib .
• Technical signals are bullish as RSI is at 61, daily momentum studies 5 DMA, 9 EMA are trending up.
• Immediate resistance is located at 2.0182 (23.6%fib ), any close above will push the pair towards 2.0302 (Higher BB).
• Strong support is seen at 2.0066 (Daily low) and break below could take the pair towards2 .0013 (38.2%fib).
Recommendation: Good to buy on dips around 2.0070 with stop loss of 1.9950 and target price of 2.0250
