• GBP/AUD extended its yesterday’s gain on Tuesday as investors bought pound on optimistic that a Brexit deal could be reached this week.
• The pair reaches 1.8247 after extending north from 1.8112 (Daily low). 1.8262 is the highest level since 24th Nov.
• Any downside correction is likely to be temporary as barrier at 1.8112 (100 DMA) is set to restricting lower move.
• Technical signals are bullish as RSI is at 54, daily momentum studies 5, 9,11 DMA are trending up.
• On the upside, Immediate resistance is located at 1.9839 ( 38.2%fib), any close above will push the pair towards 1.8239 ( 24th Nov high).
• On the downside, strong support is seen at 1.8205 (30 DMA) and break below could take the pair towards 1.8123 (5 DMA).
Recommendation: Good to buy around 1.8220, with stop loss of 1.8100 and target price of 1.8300.
