• GBP /AUD strengthened on Thursday as risk-sensitive pound benefited from equity gains.
• Equity , commodity gains drove risk-on news China is set to loosen COVID curbs.
• The pairs rise above the 1.7896 (5DMA) has reinforced the growing bullish strength, putting focus on resistance at 1.7850 level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 61 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8034 (23.6% fib), any close above will push the pair towards 1.81024 (HIgher).
• Immediate support is seen at 1.7896 (5DMA) and break below could take the pair towards 1.7680 (38.2%fib).
Recommendation: Good to buy on dips around 1.7960, with stop loss of 1.7850 and target price of 1.7850.
