• GBP/ AUD strengthened on Tuesday after data showed wages in Britain's labour market grew sharply and unemployment unexpectedly fell.
• Data from the Office of National Statistics (ONS) on Tuesday showed unexpected strength in salary growth in the three months to April.
• GBP/ AUD remains well below 1.8677( 50%fib),Daily close below 38.2%fib increase the scope for much bigger drop.
• Technical signals are bearish as RSI is at 32,while moving averages and MACD are trending lower.
• Immediate resistance is located at 1.8628(5DMA), any close above will push the pair towards 1.8677( 50%fib).
• Immediate support is seen at 1.8504 (38.2%fib) and break below could take the pair towards 1.8548 (5DMA).
Recommendation: Good to buy around 1.8600, with stop loss of 1.8720 and target price of 1.8560
