• GBP/ AUD strengthened on Monday as risk-sensitive AUD was negatively impacted by easing oil prices and geopolitical tension.
• Crude prices fell snapping five days of gains, as investors took profits after a report on slowing economic activity in China.
• The pair is attempting to breach resistance at 23.6% fib. A decisive break closure above will generate further gains.
• Technical signals are bullish as RSI is at 63, daily momentum studies 5, 9 and 11 DMAs are trending up.
• Immediate resistance is located at 1.7608 ( 23.6% fib), any close above will push the pair towards 1.7713 (Higher BB).
• Immediate support is seen at 1.7489 (5DMA) and break below could take the pair towards 1.7334 (38.2% fib).
Recommendation: Good to buy around 1.7540, with stop loss of 1.7360 and target price of 1.7660
