FxWirePro: GBP/AUD rangebound, caution ahead of BoE's Super Thursday

• GBP/AUD is trading a narrow range, downside finds strong support at 1.7534 (5-DMA).
   
• Market focus on BoE's Super Thursday, investors wary to carry big bets heading into the key event risk.
   
• The pair is holding break above 200-DMA, we see major reversal in trend only on close below.
   
• Bullish RSI divergence adds to upside bias in the pair. Price action is holding above daily cloud and momentum studies are bullish.
   
• Technicals on weekly charts are also bullish, the pair has broken into weekly cloud. Scope for rise upto 1.7750 and then 1.78 levels.

Resistance levels – 1.78 (trendline), 1.8160 (50% Fib), 1.82

Support levels - 1.76 (38.2% Fib of 2.0530 to 1.5789 fall), 1.7535 (5-DMA), 1.7120 (trendline)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-breaks-major-trendline-resistance-at-17120-good-to-go-long-on-dips-681136) has hit TP1.

Recommendation: Raise trailing stops to 1.7475. Hold for upside.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 155.387 (Bullish), while Hourly AUD Spot Index was at -68.3005 (Bearish) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.