• GBP/AUD strengthened on Monday as risk aversion knocked the Australian dollar against British pound.
• Underlying trend for the pair remains bullish. A break above 1.7701 ( 38.2%fib) might spur increased upward momentum.
• At GMT 18:25, the pair was trading 0.34% higher at 1.7640, highest since 5th January.
• Momentum studies, 5, 10 & 21 DMAs track north - positive setup.
• On the upside, Immediate resistance is located at 1.7701 ( 38.2%fib), any close above will push the pair towards 1.7772 (23.6% fib).
• On the downside, strong support is seen at 1.7640 (50%fib) and break below could take the pair towards 1.7580 (61.8%fib).
Recommendation: Good to buy around 1.7640, with stop loss of 1.7580 and target price of 1.7750.
