• GBP/AUD strengthened on Thursday as sterling kept firm tone against Australian dollar despite weak UK PMI data.
• The S&P Global UK Composite PMI for the services and manufacturing sectors fell to 52.8 in May from 54.1 in April, undercutting the median poll forecast for a much more modest dip to 54.0.
• A rally towards is 1.9300 level is possible if GBP/AUD bulls overcome resistance at 38.2%fib.
• Technical signals are bullish as RSI is at 59, daily momentum studies 5 , 9 DMA’s are trending up.
• Immediate resistance is located at 1.9240(38.2%fib ), any close above will push the pair towards 1.9306(23.6%fib).
• Strong support is seen at 1.9176 (50%fib) and break below could take the pair towards 1.9110 (61.8%fib).
Recommendation: Good to buy on dips around 1.9210 with stop loss of 1.9120 and target price of 1.9300
