• GBP/AUD initially gained on Monday but gave up as pound was hurt by a weak economic outlook and less hawkish Bank of England expectations.
• BoE looked mainly concerned about risks of a possible recession and a slowdown in the labour market.
• GBP/AUD dipped towards 1.7743 after hitting daily high at 1.7889. A break and daily close above 1.7879 (38.2% fib) will accelerate further gains.
• Technical are bullish, daily RSI is negative at 53, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.7807 (Higher BB ), any close above will push the pair towards 1.7879 (38.2% fib).
• Strong support is seen at 1.7690(50%fib) and break below could take the pair towards 1.7516 (61.8%fib).
Recommendation: Good to buy on around 1.7740, with stop loss of 1.7600 and target price of 1.7850
