• GBP/AUD staged a sharp recovery on Wednesday and is back above resistance at 50% retracement level.
• GBP/AUD rise was sparked by cooler than expected US inflation data .The pair hit daily low at 2.0681 and was last trading at 2.0844
• The pair is expected to trade higher in the short-term unless and until it closes significantly below 2.0436 (61.8% fib).
• Technical signals show the pair could gain more ground in the short-term as RSI is at 51 bullish, and lower bollinger band is turning up.
• Immediate resistance is located at 2.0791( June 4th high), any close above will push the pair towards 2.1085 (38.2% fib).
• Immediate support is seen at 2.0778 (50% fib) and break below could take the pair towards 2.0655(Lower BB).
Recommendation: Good to buy around 2.0820, with stop loss of 2.0750 and target price of 2.0900
