• GBP/ AUD strengthened on Tuesday as fall in Dalian iron ore and gold prices weighed on Australian dollar.
• Dalian iron ore fell to 5-month low on Tuesday , iron ore is big export earner for Australia.
• GBP/ AUD is now on course to test 23.6%fib resistence, if broken would will rise towards 1.9500 Level.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 51,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.9435(23.6%fib), any close above will push the pair towards 1.9499 (Higher BB).
• Immediate support is seen at 1.9271 (38.2%fib) and break below could take the pair towards 1.9212 (50%fib).
Recommendation: Good to buy around 1.9350, with stop loss of 1.9200 and target price of 1.9430
