• GBP/ AUD strengthened on Tuesday as hawkish comments from Bank of England policymakers and rally in equity market boosted pound appeal.
• London’s FTSE 100 index climbed on Tuesday, as a rally in crude prices saw energy stocks surge.
• Investors awaited UK consumer price data for May due on Wednesday, after inflation in April surged to a 40-year high.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 53,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.7706( 38.2%fib), any close above will push the pair towards 1.7737 (Higher BB).
• Immediate support is seen at 1.7578 (50%fib) and break below could take the pair towards 1.7527(11DMA).
Recommendation: Good to buy around 1.7590, with stop loss of 1.7480 and target price of 1.7670
