• GBP/AUD strengthened on Wednesday as Australian dollar continued fall following Tuesday’s dovish rate hike by RBA.
• The RBA on Tuesday raised interest rates to a 12-year high, ending four months of steady policy, but watered down its tightening bias to make it more conditional on incoming data.
• At GMT 17:12, the pair was trading 0.26% higher at 1.9157 after rebounding from level 1.9046.
• Technical signals are bullish as RSI is at 51, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.9166 (38.2%fib ), any close above will push the pair towards 1.9247 (April 2nd high).
• Strong support is seen at 1.9124 (14DMA) and break below could take the pair towards 1.9099 (50%fib).
Recommendation: Good to buy on dips around 1.9140 with stop loss of 1.9050 and target price of 1.9200
