• GBP/AUD strengthened on Monday as rising COVID cases & fresh restrictions in China weighed on Australian dollar strongly.
• Rising COVID cases in China may fuel renewed lockdowns which may hindering economic growth, which could negatively impact Australian currency which has strong trade ties which china.
•The pair is testing resistance 1.7909 (23.6% fib), a daily close below will accelerate upside towards 1.8000 (Psychological level ).
• Technicals are favouring bullish sentiment as RSI is at 58 and the pair is trading above 5, 9 & 11-DMAs.
• Immediate resistance is located at 1.7909 (23.6% fib), any close above will push the pair towards 1.8070(Higher BB).
• Support is seen at 1.7672 (9DMA)and break below could take the pair towards 1.7565(38.2% fib).
Recommendation: Good to buy around 1.7860, with stop loss of 1.7700 and target price of 1.8000.
