• GBP/AUD strengthened on Monday as waning Scottish election concerns bolstered sterling
• Pound strengthened against stronger Australian dollar as market participants did not interpret pro-independence parties win as a near-term risk.
• GBP/AUD rally’s off from 1.7810 (intra-day low), lift stops after finding resistance at 1.7985(200DMA).
• GBP/AUD remains vulnerable, only a break and daily close above 1.8088 (Higher BB) will shift bias to the upside.
• Immediate resistance is located at 1.7985(200DMA), any close above will push the pair towards 1.8051 (61.8%fib).
• Strong support is seen at 1.7922 (50%fib) and break below could take the pair towards 1.7800 (5DMA).
Recommendation: Good to sell on around 1.8020, with stop loss of 1.8090 and target price of 1.7930
