FxWirePro:GBP/AUD chart points recovery in coming sessions, good to buy on dips
• GBP/AUD initially declined on Monday but recovered some ground as expectations that the Bank of England might hike rates early next year offered some support to sterling.
•Sterling also found support as fears of widespread market contagion from indebted developer China Evergrande Group receded.
• At GMT 22:40, the pair was trading down 0.02 percent at 1.8802 after reaching daily low at 1.8753.
• Technical signals are bullish RSI implies upward shorter-term momentum is in place,while moving averages are tending higher
• Immediate resistance is located at 1.8817 (50DMA ), any close above will push the pair towards 1.8873(38.2%fib).
•Immediate support is seen at 1.8753 (50%fib ) and break below could take the pair towards 1.8705 (Ichimoku Cloud Base).
Recommendation: Good to sell around 1.8780, with stop loss of 1.8700 and target price of 1.8830.