FxWirePro: GBP/AUD on minor recovery path, awaiting key UK GDP data for further impetus

• GBP/AUD up 0.68% on the day, Aussie weakness post CPI miss adding support.
• Focus on UK Q2 GDP print for further impetus. The following are forecasts from a few major banks:

               UK Q2 GDP likely to post 0.4% q/q rise in the initial print - Nomura

               UK Q2 GDP to come in at 0.3% q/q - TDS

               UK Q2 GDP to come in unchanged at 0.2% - HSBC

               UK Q2 GDP likely up 0.3% q/q - Rabobank

• The pair is on a minor recovery track, up from 3-month lows of 1.6268 hit on July 20.
• Technical indicators are mildly bullish, RSI and Stochs are biased higher.
• We see bullish divergence on Stochs and MACD is on verge of bullish crossover on signal line.
• Immediate resistance lies at 1.6594 (23.6% Fib of 0.7650 to 1.6268 fall). Break above will see next major resistance at 200-DMA at 1.6670.
• Bullish invalidation likely on break below 1.6290 (trendline support)

Support levels - 1.6414 (5-DMA), 1.6337 (July 24 low), 1.6290 (trendline support)

Resistance levels - 1.6594 (23.6% Fib of 0.7650 to 1.6268 fall), 1.6670 (200-DMA), 1.6718 (20-DMA)

Recommendation: Good to go long on dips around 1.6475/ 1.65, SL: 1.64, TP: 1.6595/ 1.6670/ 1.67

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 146.552 (Highly bullish), while Hourly AUD Spot Index was at -144.541 (Highly bearish) at 0630 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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