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• GBP/AUD strengthened on Tuesday as sterling kept firm tone ahead of Wednesday's UK budget.
• British finance minister Jeremy Hunt will announce his budget on Wednesday.Investors expect a raft of policy announcements, including a radical scheme to help first-time home buyers.
• A rally towards is 1.9600 level is possible if GBP/AUD bulls overcome resistance at 1.9581(38.2%fib ).
• Technical signals are bullish as RSI is at 63, daily momentum studies 5 , 9 DMA’s are trending up.
• Immediate resistance is located at 1.9581(38.2%fib ), any close above will push the pair towards 1.9539(Higher BB).
• Strong support is seen at 1.9463 (50%fib) and break below could take the pair towards 1.9334 (61.8%fib).
Recommendation: Good to buy on dips around 1.9510 with stop loss of 1.9400 and target price of 1.9600
