• GBP/AUD initially gained on Tuesday but longs ceded some ground after UK labour data.
• UK unemployment rate rose by more than expected to 4.2% from 3.9%, also suggesting a loss of momentum in the jobs market.
• Underlying trend for the pair remains bullish. A break above 23.6%fib resistance might spur increased upside momentum.
• Technical signals show bullish momentum , the 9 SMA and 11 SMAs trend north, while RSI is heading up at 58.
• Immediate resistance is located at 1.9472 (23.6%fib), any close above will push the pair towards 1.9525 (March 6th high).
•,Strong support is seen at 1.9326 (38.2%fib) and break below could take the pair towards 1.9262 (SMA 9).
Recommendation: Good to buy around 1.9380, with stop loss of 1.9280 and target price of 1.9480
