• GBP/AUD rose on Thursday as the British currency was swept up in global market swings that weakened the Australian dollar broadly.
• At GMT 17:40, the pair was trading 0.65% higher at 2.0488, slightly lower from session high at 2.0604.
• Any downside correction is likely to be temporary as barrier at 2.0190 (Trendline) is set to restricting lower move.
• Technical signals are bullish as RSI is at 66, daily momentum studies 5 DMA, 9 EMA are trending up.
• On the upside, Immediate resistance is located at 2.0596 (Daily High ), any close above will push the pair towards 20753 (March 9th high).
• On the downside, strong support is seen at 1.20280 (5 DMA) and break below could take the pair towards 2.0190 (Trend line).
Recommendation: Good to buy on dips around 2.0200 with stop loss of 2.0190 and target price of 2.0850.
