• GBP/AUD initially gained on Monday but gave up ground as investors are eagerly anticipatedthe interest rate decision from the RBA, scheduled to be announced on Tuesday.
• The RBA is anticipated to maintain the Official Cash Rate (OCR) at its current level of 4.35%, with attention cantered on the timing of potential interest rate cut.
• A rally towards is 1.9500 level is possible if GBP/AUD bulls overcome resistance at 1.9472 (23.6%fib ).
• Technical signals are bullish as RSI is at 62, daily momentum studies 5 DMA, 9 EMA are trending up.
• Immediate resistance is located at 1.9472 (23.6%fib ), any close above will push the pair towards 1.9546 (Higher BB).
• Strong support is seen at 1.9305 (38.2%fib) and break below could take the pair towards 1.9164 (50%fib).
Recommendation: Good to buy on dips around 1.9320 with stop loss of 1.9220 and target price of 1.9500
