• GBP/AUD rose on Friday as recent upbeat UK economic data fuelled bets the Bank of England will raise interest rates.
• Economic data this week including UK inflation, job and retail sales numbers bolstered expectations the BoE is ready to raise interest rates.
• The market expectation for a 25bp hike in December fell to 49% from 66% last week, while a 15bp hike is still expected .
• Technical signals are bullish as RSI is at 59, daily momentum studies 5 DMA, 11DMAs are trending up.
• Immediate resistance is located at 1.8593 (38.2% fib),any close above will push the pair towards 1.8693 (23.6% fib).
• Strong support is seen at 1.8503(50%fib) and break below could take the pair towards 1.8421(50%fib)
Recommendation: Good to buy on dips around 1.8580 with stop loss of 1.8500 and target price of 1.8700.
