- GBP/AUD struggles to extend gains above 100-DMA. We see further upside only on break above.
- The pair is trading in a narrow range with a day's high at 1.7963 and a low of 1.7931.
- Technical studies are biased higher. Momentum bullish with RSI strong and rising.
- We evidence bullish divergence on Stochs which adds to the upside bias.
- Decisive break above 100-DMA targets 61.8% Fib at 1.8082. Breach there could see further upside.
- On the flipside, 55-EMA is strong support at 1.7845, break below could see minor weakness.
- Violation at 200-DMA to invalidate bullish bias.
Support levels - 1.79, 1.7885 (5-DMA), 1.7845 (55-EMA)
Resistance levels - 1.7942 (100-DMA), 1.80, 1.8080 (61.8% Fib), 1.81
Recommendation: Stay long on close above 100-DMA, SL: 1.79, TP: 1.80/ 1.8080/ 1.81
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 88.5675 (Slightly bullish), while Hourly AUD Spot Index was at 66.4716 (Neutral) at 0415 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
