• GBP/AUD strengthened on Thursday as broad Australian dollar weakness helped the pound shrug off political risks and recession fears.
• The Australian dollar lost ground as copper , iron-ore drop extended as recession fears persisted.
• At GMT 18:18, the pair was trading up 0.44 percent at 1.7777 after reaching daily low at 1.7692.
• Technical signals are bullish as RSI is at 62, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.7786(Daily High ), any close above will push the pair towards 1.7866 (38.2%fib).
• Strong support is seen at 1.7692 (50%fib) and break below could take the pair towards 1.7663 (5DMA).
Recommendation: Good to buy on dips around 1.7770 with stop loss of 1.7680 and target price of 1.7860.
