FxWirePro: GBP/AUD upside pauses shy of 20-DMA, bullish divergence keeps scope for further gains

GBP/AUD chart on Trading View used for analysis

• GBP/AUD is extending upside for the 3rd straight session, bias higher.
   
• The pair has paused upside just shy of 20-DMA resistance at 1.7636, break above will see further gains.
   
• Aussie dampened, weakens across the board after unexpected miss in Australia's Trade Balance.
   
• Australia’s trade surplus narrowed to A$2.3 billion in October from A$2.9 billion the previous month.
   
• Exports remained static but imports surged, rose 3% following -1% in September while exports were steady at +1%.
   
• Traders largely ignored positive retail sales which were up 0.3% m/m in Oct versus a +0.2% forecast and accelerating from the +0.1% in Sept.
   
• The pair trades with a bullish bias on daily charts, also a bullish divergence on RSI and Stochs keeps scope for further upside.
   
• Break above 20-DMA will take the pair higher. Rejection there could see resumption of weakness.

Support levels - 1.7567 (23.6% Fib), 1.7432 (5-DMA), 1.7208 (Dec 3 low)

Resistance levels - 1.7636 (20-DMA), 1.7789 (38.2% Fib), 1.7887 (110-EMA)

Recommendation: Stay  long on decisive break above 20-DMA, SL: 1.75, TP: 1.77/ 1.7785/ 1.7885

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.