• GBP/ AUD initially dipped on Tuesday but recovered ground after better than expected pay growth data.
• Data showed February pay growth rose faster than anticipated, boosting chances of a 25 basis point interest rate hike next month..
• The pair hit daily low at 1.8404 and was last trading at 1.8471.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 56 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8512 (Dailyh high), any close above will push the pair towards 1.7656(23.6%fib).
• Strong support is seen at 1.8366(38.2%fib) and break below could take the pair towards 1.8301(Lower BB )
Recommendation: Good to buy around 1.8440 with stop loss of 1.8400 and target price of 1.8520
