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• GBP/AUD strengthened on Tuesday but gains were limited as investors stayed cautious amid the standoff over the U.S. debt ceiling.
• Lack of progress in talks over increasing the U.S. debt limit hurt investors' appetite for risk-taking.
• Technical lean bullish, RSI is lower at 57 daily momentum studies 9, 11 and 14 DMA’s are trending up.
• Immediate resistance is located at 1.8828 (18th May high), any close above will push the pair towards 1.8886 (23.6%fib).
• Support is seen at 1.8701(14DMA) and break below could take the pair towards 1.8586 (38.2%fib).
Recommendation: Be on side lines
