• GBP/AUD strengthened on Friday as concern of weaker global growth , lower oil prices, COVID-19 lockdowns in China weighed Australian dollar.
• China’s zero-covid policy lock downs have driven downgrades to China's GDP outlook and increased concerns over global growth
• The is pair heading towards the 38.2%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical signals are bullish as RSI is at 51, daily momentum studies 5,9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.7839 ( 50%fib), any close above will push the pair towards 1.8028 (38.2%fib)
• Strong support is seen at 1.7640 (38.2%fib) and break below could take the pair towards 1.7541 (14DMA).
Recommendation: Good to buy around 1.7700, with stop loss of 1.7580 and target price of 1.7780.
