• GBP /AUD strengthened on Tuesday as Australian dollar weakened after coronavirus news threatened to upend the outlook for monetary policy in Australia
• Australia's central bank said it would be prepared to take policy action should coronavirus lockdowns across the country threaten a deeper economic setback, minutes from its August meeting showed on Tuesday.
•The pair hit daily high at 1.8953 and was last trading at 1.8946 at (GMT 21:50).
• From a technical viewpoint, the moving averages are pointing upwards, while the RSI is strongly bearish at 67.
.
• Immediate resistance is located at 1.8966 (23.6% fib), any close above will push the pair towards 1.9016 (Higher BB).
• Immediate support is seen at 1.8859 (38.2%fib) and break below could take the pair towards 1.8813 (21DMA).
Recommendation: Good to buy on dips around 1.8900, with stop loss of 1.8800 and target price of 1.8960.
