• GBP/AUD strengthened on Tuesday as increased in risk sentiment and Bank of England’s cautious stance on rate outlook supported pound.
• On the data front, British retailers reported a third consecutive month of declining sales in August and anticipate further decreases in September. This trend has led them to reduce their hiring and investment plans.
• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 1.9600 level
• Technical are bullish, daily RSI is up at 53 , daily momentum studies 9 and 10 DMAs are trending north.
• Immediate resistance is located at 1.9577 (38.2%fib ), any close above will push the pair towards 1.9670 (Aug 6th high).
• Strong support is seen at 1.9431(50%fib ), and break below could take the pair towards 1.9304 (61.8%fib).
Recommendation: Good to buy around 1.9500 with stop loss of 1.9430 and target price of 1.9600
