• GBP/AUD strengthened on Monday as traders digested UK election result and focus on monetary policy in the UK and United States.
• BoE rate expectations mirror Federal Reserve rate expectations, with both central banks banks expected to cut rates by September, and roughly two cuts priced in before year-end..
• Pair traded in 1.8959/1.9049 range and was last trading at 1.9013 in the US afternoon.
• Technical signals are bullish as RSI is at 55, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9046 (38.2%fib), any close above will push the pair towards 1.9106(50%fib).
• Strong support is seen at 1.8959 (23.6%fib ) and break below could take the pair towards 1.8959 ( (Lower BB).
Recommendation: Good to buy around 1.9000, with stop loss of 1.8900 and target price of 1.9080
