• GBP/ AUD strengthened on Wednesday as the pair was boosted by hawkish tone by Federal Reserve Chair Jerome Powell.
• In a knee-jerk reaction, the pair initially fell, but turned higher after Powell said that it was very premature to be thinking about pausing rate hikes.
• The pair currently is approaching resistance at 23.6%fib. A break above 11.8651 would unmask 1.8200 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 61,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.8012 ( 23.6%fib), any close above will push the pair towards 1.8218 (Higher BB).
• Immediate support is seen at 1.7823 (21DMA) and break below could take the pair towards 1.7706 (38.2%fib).
Recommendation: Good to buy around 1.7980, with stop loss of 1.7900 and target price of 1.8150
