• GBP /AUD strengthened on Monday as below expectation Chinese GDP data dented Australian dollar .
• China's gross domestic product (GDP) grew 6.3% year-on-year in the second quarter, compared with analyst forecasts of 7.3%, as its post-pandemic recovery lost momentum.
• The pair hit daily high at 1.9235 and was last trading at 1.9176 at (GMT 18:06).
• Technical signals show the pair could gain more ground in the short-term as RSI is at 57,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.9265 (23.6% fib), any close above will push the pair towards 1.9342 (Higher BB).
• Immediate support is seen at 1.9116 (38.2%fib) and break below could take the pair towards 1.9048(21DMA).
Recommendation: Good to buy on dips around 1.9160, with stop loss of 1.9060 and target price of 1.9250
