• GBP/AUD extended its yesterday’s bounce as Australian dollar was weighed down by less than expected Australian wage data and sliding iron ore prices.
• Figures from the Australian Bureau of Statistics on Wednesday showed its wage price index (WPI) rose 0.7% in the June quarter, under forecasts for a 0.8% increase.
• At GMT 16:07, the pair was trading up 1.04 percent at 1.7393 after reaching daily high at 1.7440.
• Technical signals are bullish as RSI is at 51, daily momentum studies 5,9, 11 DMA’s are trending up.
• Immediate resistance is located at 1.7440 ( 50%fib), any close above will push the pair towards 1.7511 ( Aug 5th high).
• Strong support is seen at 1.7313 (61.8%fib) and break below could take the pair towards 1.7195 (5DMA).
Recommendation: Good to buy around 1.7380, with stop loss of 1.7290, and target price of 1.7460.
