• GBP /AUD strengthened on Monday as falling commodity prices and ongoing lockdowns in Australia weighed on antipodean currency.
• Iron ore futures plummeted more than 5%, under pressure from prospects for better supply and weaker Chinese demand, and oil prices continued to fall amid fears that coronavirus travel restrictions would threaten rising demand expectations.
• The pair hit daily high at 1.8922 and was last trading at 1.8892 at (GMT 19:45).
• The pairs rise above the 1.7587 has reinforced the growing bullish strength, putting focus on resistance at 1.7740.
• Immediate resistance is located at 1.8922 (Daily high), any close above will push the pair towards 1.8979 (23.6% fib).
• Immediate support is seen at 1.8873 (38.2%fib) and break below could take the pair towards 1.8843 (5DMA).
Recommendation: Good to buy on dips around 1.8870, with stop loss of 1.8790 and target price of 1.8975.
