• GBP /AUD strengthened on Tuesday as the pair was aided by profit-taking on GBP shorts.
• The pair rebounded from daily low at 1.7263 and has rallied towards in 1.7432 by US session.
• The pairs rise above the 5DMA has reinforced the growing bullish strength, putting focus on resistance at 1.7478
• Immediate resistance is located at 1.7424 (38.2% fib), any close above will push the pair towards 1.7478 (9DMA).
• Immediate support is seen at 1.7368(5DMA) and break below could take the pair towards 1.7300 (50%fib).
Recommendation: Good to buy on dips around 1.7400 with stop loss of 1.7300 and target price of 1.7500.
