FxWirePro: GBP/AUD retreats slightly but trend is still bullish
• GBP/AUD eased from 1.9350 level on Tuesday as investors assessed the extent to which the Bank of England would likely cut interest rates later than its peers. • The key question for the medium term is whether and by ho…
• GBP/AUD eased from 1.9350 level on Tuesday as investors assessed the extent to which the Bank of England would likely cut interest rates later than its peers.
• The key question for the medium term is whether and by how much the Bank of England will trail the Federal Reserve and the European Central Bank in terms of rate cut.
• The pair pulled back after failing to break resistance at 1.9344, it was last trading at 0.24 percent at 1.9287 level.
• Technical signals are bullish as RSI at 63, daily momentum studies 11, 14 and 21 DMA’s are trending up.
• Immediate resistance is located at 1.9344 (23.6% fib), any close above will push the pair towards 1.9410 ( Higher BB).
• Immediate support is seen at 1.9213(38.2% fib) and break below could take the pair towards 1.9169(Jan 17th low).
Recommendation: Good to buy around 1.9270, with stop loss of 1.9150 and target price of 1.9380.
