• GBP/ AUD rose sharply on Tuesday as Australian dollar was weighed down by iron ore losses and COVID-related lockdowns in Australia.
•Worries that the Delta strain of the coronavirus could touch off major outbreaks have forced lockdowns in Australia.
• The pair currently is approaching resistance at 1.8460 ( 23.6%fib). A break above 1.8460 would unmask 1.8500 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 57,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.8460 ( 23.6%fib), any close above will push the pair towards 1.8493 (Higher BB).
• Immediate support is seen at 1.8359 (38.2%fib) and break below could take the pair towards 1.8282(50%fib).
Recommendation: Good to buy around 1.8390, with stop loss of 1.8300 and target price of 1.8500
