• GBP /AUD strengthened on Monday as Australian dollar fell on fears further curbs could be imposed in Europe to contain the Omicron coronavirus variant.
• The Australian dollar, which is seen as a liquid proxy for risk appetite, was down 0.05% against pound.
• The pair is holding near today's high, repeated failures to close below 1.8545(5DMA) support is bullish sign.
• Immediate resistance is located at 1.8657 (23.6%fib), any close above will push the pair towards 1.8698 (December 1st 2021).
• Immediate support is seen at 1.8545 (5DMA) and break below could take the pair towards 1.8506 (38.2%fib).
Recommendation: Good to buy on dips around 1.8560, with stop loss of 1.8400 and target price of 1.8610.
