• GBP/AUD strengthened on Wednesday as extension of iron-ore decline added weight on Australian dollar.
• GBP/AUD gained up to 1.9200 level before retreating slightly to trade at 1.9174
• Technical signals indicate bullish movementum, as RSI is at 52, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.9205 (38.2%fib), any close above will push the pair towards 1.9261(Oct 26th high).
• Strong support is seen at 1.9135 (11DMA) and break below could take the pair towards 1.9065 (50% fib )
Recommendation: Good to buy around 1.9160 , with stop loss of 1.9080 and target price of 1.9250
