• GBP/AUD dipped on Monday as risk-sensitive Australian benefited from China policy news.
• China's Politburo announced it will implement an appropriately loosemonetary policy next year, marking its first easing in 14 years, along with a more proactive fiscal policy to boost economic growth.
• The remarks were made ahead of the upcoming Central Economic Work Conference, where key targets and policy plans for the next year will be set.
• Technical are bullish, daily RSI is positive at 53, 11 and 14 SMAs are trending up.
• Immediate resistance is located at 1.9946(23.6%fib ), any close above will push the pair towards 2.0000 (Psychological level).
• Strong support is seen at 1.9786(38.2%fib) and break below could take the pair towards 1.9670(50%fib).
Recommendation: Good to buy around 1.9750 , with stop loss of 1.9650and target price of 1.9860
