• GBP/AUD extended its yesterday’s bounce as gloomy message from the U.S. Federal Reserve on growth lifted the pair, despite coronavirus pandemic and Brexit concerns.
• The cross racked up its biggest single-day gain since July 7th on Thursday, heading into the US afternoon it was trading around 1.8366.
• Any downside correction is likely to be temporary as barrier at 1.9515 (lower ascending trend line) is set to restricting lower move.
• Technical signals are bullish as RSI is at 46, daily momentum studies 50 DMA, 5 EMA are trending up.
• On the upside, Immediate resistance is located at 1.8400 ( Higher BB), any close above will push the pair towards 1.8456 ( 23.6% fib).
• On the downside, strong support is seen at 1.8296 (38.2% fib) and break below could take the pair towards 1.8245 (9 DMA).
Recommendation: Good to buy around 1.8350, with stop loss of 1.8160 and target price of 1.8450.
