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FxWirePro: GBP/AUD uptrend gains momentum, good to buy on dips

• GBP/ AUD strengthened on Thursday as  market’s focus turning to the BoE’s next meeting.

• Money markets currently suggest a bold 50 basis point hike from the BoE on Aug. 4 is much more likely than a conservative 25 bps increase..

• The pair  picked up  upside momentum and is approaching 1.7434 (14DMA). A close above will open  up 1.7483 ( 38.2%fib) level in the short time.

• Technical signals show the pair could gain more ground in the short-term as RSI is at 54,while moving averages are trending higher.

• Immediate resistance is located at 1.7440( 14DMA), any close above will push the pair towards 1.7476(38.2%fib).

• Immediate support is seen at 1.7344 (Daily low) and break below could take the pair towards 1.7266 (23.6%fib).

Recommendation: Good to buy around 1.7410, with stop loss of 1.7600 and target price of 1.7300

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