• GBP/AUD surged on Friday following the US payrolls data as the market evaluated the potential size of the Fed's rate cut.
• Next week focus will be on UK employment, U.S. CPI data and central bank appearances from the Fed and BoE.
• Bulls have tightened their grip on this market,a break and daily close under 38.2% fib support could deepen bearish outlook further.
• Technicals are bearish as daily RSI is at 63 , daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.9700(Daily high), any close above will push the pair towards 1.9971 (23.6% fib).
• Strong support is seen at 1.9616(38.2% fib) and break below could take the pair towards 1.9480 (50% fib).
Recommendation: Good to buy on around 1.9650, with stop loss of 1.9550 and target price of 1.9760
