• GBP /AUD strengthened on Monday as bulls remained reluctant to give up recent trend peaks.
• The pound's rise against Australian dollar came after a rise in China CPI and expectations of U.S. COVID recovery aid , shrugging off U.S.-China political tensions.
• The pair hit daily high at 1.8087 and was last trading at 1.8078 at (GMT 19:28).
• Technical signals favours bullish sentiment, RSI is at 56 and pair trades above 5 & 9-DMAs.
• Immediate resistance is located at 1.8304 (38.2% fib), any close above will push the pair towards 1.8353 (6th Aug high).
• Immediate support is seen at 1.8232 (61.8% fib) and break below could take the pair towards 1.8182 (50% fib ).
Recommendation: Good to buy on dips around 1.8250, with stop loss of 1.8100 and target price of 1.8340.
