• GBP/AUD strengthened on Tuesday as Australian dollar declined across the board after its central bank left interest rates unchanged.
• The Reserve Bank of Australia maintained the interest rates at 4.35 , in line with market expectations. RBA highlighted that economic indicators had largely aligned with anticipated forecasts.
• A rally towards is 1.9300 level is possible if GBP/AUD bulls overcome resistance at 1.9263 (38.2%fib).
• Technical signals are bullish as RSI is at 54, daily momentum studies 5 DMA, 9 DMA and 11DMA's are trending up.
• Immediate resistance is located at 1.9263 (38.2%fib), any close above will push the pair towards 1.9322(14Nov high).
• Strong support is seen at 1.9124 (50%fib )and break below could take the pair towards 1.9075(Daily low).
Recommendation: Good to buy on dips around 1.9210 with stop loss of 1.9130 and target price of 1.9300
