• GBP/ AUD retreated on Wednesday after data showed British construction firms suffered a sharp drop in orders in August.
• The S&P Global/CIPS UK Purchasing Managers' Index for the construction industry fell to 50.8 in August, remaining in growth territory but down from 51.7 in July.
• GBP/ AUD erased some of yesterday’s gains, It was last trading down 0.48pecent at 1.9603 .
• From a technical viewpoint, RSI is strongly bullish at 53, daily momentum studies, 5, 10 and 21 trending up.
• Immediate resistance is located at 1.9715(38.2%fib), any close above will push the pair towards 1.9837(Aug 23rd high).
• Immediate support is seen at 1.9642 (5DMA) and break below could take the pair towards 1.9545 (50%fib).
Recommendation: Good to buy around 1.9550, with stop loss of 1.9400 and target price of 1.9680
