• GBP/AUD rose on Friday as the British currency was swept up in in holiday-thinned trade.
• At GMT 20:58, the pair was trading 0.65% higher at 2.0237, recovering from daily low hit earlier in the day at 2.0110.
• The key focus for markets remains on the upcoming set of tier 1 UK data releases, as these will likely play a crucial role in determining the future direction of the British pound.
• Technical signals are bullish as RSI is at 66, daily momentum studies 5 DMA, 11 DMA’s are trending up.
• Immediate resistance is located at 2.0270 (23.6%fib ), any close above will push the pair towards 2.0322 (Higher BB).
• Strong support is seen at 2.0080 (38.2%fib) and break below could take the pair towards 1.9921(50%fib).
Recommendation: Good to buy on dips around 2.0200 with stop loss of 2.0190 and target price of 2.0300.
