• GBP /AUD strengthened on Monday as concerns about the Chinese economy and lower commodity oil prices weighed on Australian dollar.
• Oil prices fell around 6% on Monday as ongoing coronavirus lockdowns in China, the biggest oil importer, stoked concerns over the demand outlook.
• The pairs rise above the 1.7720 (38.2%fib)has reinforced the growing bullish strength, putting focus on resistance at 1.7900 level.
• Immediate resistance is located at 1.7845 (Higher BB), any close above will push the pair towards 1.7845 (Higher BB).
• Immediate support is seen at 1.7720 (38.2%fib) and break below could take the pair towards 1.7619(21DMA).
Recommendation: Good to buy on dips around 1.7730, with stop loss of 1.7620 and target price of 1.7850.
