• GBP/ AUD extended its yesterday’s bounce as optimism about the UK vaccine rollout faster than continental Europe supported sterling.
• GBP/ AUD is trending north despite Britain's poor performance in managing the coronavirus, with record deaths and the impact of mutations of the virus.
• The pair attempted to breach resistance at 1.7949( 38.2% fib) and dipped towards 1.7886 level . A decisive break closure above 1.7949( 38.2% fib) could generate further gains.
• Any downside correction is likely to be temporary as barrier at 1.7801(61.8%fib) is set to restricting lower move.
• Immediate resistance is located at 1.7949( 38.2% fib), any close above will push the pair towards 1.8049 (23.6% fib).
• Immediate support is seen at 1.7877( 50% fib)and break below could take the pair towards 1.7801(61.8%fib).
• Recommendation: Good to buy around 1.7850, with stop loss of 1.7800 and target price of 1.7980
