• GBP/AUD retreated from daily high on Thursday as better-than-expected UK PMI numbers was offset by political risks and recession fears.
• Investors were on watch for further signs of political instability as the ruling Conservative Party was contesting two by-elections on Thursday.
• Price slides to 1.9501 from 1.9594 Daily high. The pair has seen a 1.9594 -1.9440 range on Thursday
• Technical signals are bullish as RSI is at 57, daily momentum studies 5, 9 and 10 DMAs are trending north.
• Immediate resistance is located at 1.9586 (Higher BB ), any close above will push the pair towards 1.9678 (23.6% fib).
• Strong support is seen at 1.9440 (38.2% fib) and break below could take the pair towards 1.9394(14DMA).
Recommendation: Good to buy on dips around 1.9490, with stop loss of 1.9380 and target price of 1.9580.
