• GBP/ AUD rose sharply on Tuesday as dovish Reserve Bank of Australia’s monetary policy statement weighed on Australian dollar.
• RBA abandoned yield control and dropped RBA abandoned its yield curve control target but pushed back against market expectations of rate hikes projection for no rate rise until 2024.
• The pair currently is approaching resistance at 1.8325( 50%fib). A break above 1.8325 would unmask 1.8416 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is rising,while moving averages 5,9 DMA’s are trending higher.
• Immediate resistance is located at 1.8325( 50%fib), any close above will push the pair towards 1.8416( 61.8%fib).
• Immediate support is seen at 1.8238 (38.2%fib) and break below could take the pair towards 1.8132 (23.6%fib).
Recommendation: Good to buy around 1.8300, with stop loss of 1.8180 and target price of 1.8380
