• GBP /AUD Initially gained on Tuesday but gave up most of the ground as markets assessed the severity of the Omicron coronavirus variant on the world economy.
• Added uncertainty over rising Covid-19 cases, a new Covid-19 variant is causing volatility in the market.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 60 bullish, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.8764 (23.6% fib), any close above will push the pair towards 1.8846 (Sep 28th high).
• Immediate support is seen at 1.8635 (38.2%fib) and break below could take the pair towards 1.8527 (50%fib).
Recommendation: Good to buy on dips around 1.8650, with stop loss of 1.8500 and target price of 1.8740.
