• GBP /AUD strengthened on Monday as a series of influential economic data releases from last week provided support for the pound.
• The pound has received support from more optimistic UK economic data, which has dampened the dovish sentiment following the latest meeting, view supported by comments from MPC members indicating that the fight against inflation continues.
• Markets are now awaiting U.S. and UK employment, wages and price data to refine interest rate expectations.
• From a technical viewpoint, RSI is strongly bullish at 59, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.9408 (23.6%fib), any close above will push the pair towards 1.9491 (Higher BB).
• Immediate support is seen at 1.9301(38.2%fib) and break below could take the pair towards 1.9252 (Feb 15th low).
Recommendation: Good to buy on dips around 1.9400, with stop loss of 1.9300 and target price of 1.9480
