• GBP/AUD initially fell sharply on Monday on concerns over fallout from Silicon Valley Bank collapse but rebounded on view that Fed will slow down the pace of its interest rate hikes.
• In an up-and-down session, the pair hit low at 1.8125 in early trading then gained towards 1.8270.
• The pair currently is approaching resistance at 23.6%fib. A break above would unmask 1.8400 level in the short term.
• From a technical viewpoint, RSI is strongly bullish at 72, daily momentum studies, 5, 10 and 11 daily MAs are pointing higher.
• Immediate resistance is located at 1.8321 (23.6%fib) any close above will push the pair towards 1.8342(Higher BB).
• Immediate support is seen at 1.8177 (38.2%fib) and break below could take the pair towards 1.8125 (Daily low).
Recommendation: Good to buy on dips around 1.8250 , with stop loss of 1.8150 and target price of 1.8380.
