• GBP/ AUD pushed its recovery envelope from 1.9021 on Wednesday as lower copper , equity prices added bearish pressure on Australian dollar.
• The Australian dollar initially jumped after a surprisingly high reading for inflation stoked speculation about a further hike in interest rates. But it erased all those gains in US session.
• The pair currently is approaching resistance at 38.2%fib. A break above would unmask 1.9300 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI has turned bullush,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.9210(38.2%fib), any close above will push the pair towards 1.9358 (23.6%fib).
• Immediate support is seen at 1.9152(21DMA) and break below could take the pair towards 1.9077 (21DMA).
Recommendation: Good to buy around 1.9180, with stop loss of 1.9080 and target price of 1.9300
