• GBP/AUD strengthened on Wednesday as sterling attracted buyers amid reports that BoE could extend emergency bond buying.
• The pair hit highest level since October 4th, it was last up 1.16% on the day at 1.7674 .
• Technical signals are bullish as RSI is at 65 , daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7697 (23.6%fib), any close above will push the pair towards 1.7812 (Higher BB).
• Strong support is seen at 1.7506 (5DMA) and break below could take the pair towards 1.7445 (38.2%fib).
Recommendation: Good to buy around 1.7670, with stop loss of 1.7500 and target price of 1.7780
