• GBP/ AUD strengthened on Monday as China’s downbeat growth forecast weakened Australian dollar across the board.
• Beijing disappointed markets on Monday by setting a modest economic growth target for this year.
• The pair currently is approaching resistance at 23.6%fib. A break above will unmask 1.5900 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 67,while moving averages are trending higher.
• Immediate resistance is located at 1.7875 ( 23.6%fib), any close above will push the pair towards 1.5912(Higher BB).
• Immediate support is seen at 1.5765 (38.2%fib) and break below could take the pair towards 1.5705 (5DMA).
Recommendation: Good to buy around 1.5860, with stop loss of 1.5770 and target price of 1.5930
