• GBP /AUD rally extended above 1.8100 on Thursday as investors took a fresh look at finance minister Rishi Sunak’s plans to revive the economy.
• The pound jumped 0.32% versus Australian dollar, touching 1.8141 in earlier trading, before retreating trade at 1.8116 at 1908 GMT.
• versold conditions have eased after recent consolidation. Barrier at 1.8024 (5 DMA) is likely to restrict lower move.
• Technical signals highlight upside bullish trend as daily RSI is rising and GBP /AUD is trading above the 5-DMA.
• Immediate resistance is located at 1.8134 (30 DMA), any close above will push the pair towards 1.8272 (50 % fib).
• Immediate support is seen at 1.8110 (38.2% fib) and break below could take the pair towards 1.8024 (5 DMA).
Recommendation: Good to buy on dips around 1.8110, with stop loss of 1.8000 and target price of 1.8220.
