• GBP /AUD strengthened on Friday as slightly weaker Australian dollar upbeat UK retail sales data boosted the pair.
• British retail sales resumed their post-lockdown recovery in June. Retail sales rose by 0.5% in June from May.
• The pair hit daily high at 1.8569 and was last trading at 1.8667 at (GMT 18:34).
• Technical signals are bullish as RSI is at 67, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.8694 (23.6%fib), any close above will push the pair towards 1.8717(Higher BB).
• Immediate support is seen at 1.8631 (5DMA) and break below could take the pair towards 1.8571 (38.2%fib).
Recommendation: Good to buy on dips around 1.8660, with stop loss of 1.8580 and target price of 1.8740.
