• GBP/ AUD rose sharply on Tuesday as Australian dollar weakened after RBA raised interest rates as expected but softened its hawkish guidance on policy.
• The Reserve Bank of Australia (RBA) lifted its cash rate 25 basis points to 3.60%, the 10th straight move since last May when rates were at an all-time low of 0.1%.
• At GMT 16:38 , the pair was trading up 0.59 percent at 1.7965 after hitting daily high at1.8035.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 65,while moving averages are trending higher.
• Immediate resistance is located at 1.7993(23.6%fib), any close above will push the pair towards 1.8053(Higher BB).
• Immediate support is seen at 1.7827 (38.2%fib) and break below could take the pair towards 1.7785 (11DMA).
Recommendation: Good to buy around 1.7950, with stop loss of 1.7860 and target price of 1.8050
