• GBP/AUD steadied around 1.7900 on Wednesday after preliminary British economic activity data beat expectations, though it still showed contraction was underway.
• The "flash" version of the HIS Markit/CIPS composite purchasing managers' index (PMI) for Britain edged up to 48.3.
• The is pair heading towards the 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bullish as RSI is is 58 , daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8028 (23.6%fib), any close above will push the pair towards 1.8148 (Higher BB).
• Strong support is seen at 1.7813(38.2%fib) and break below could take the pair towards 1.7738 (14 DMA).
Recommendation: Good to buy around 1.7880, with stop loss of 1.7760 and target price of 1.7970
