• GBP /AUD initially dipped on Tuesday but recovered some ground following Russia-Ukraine de-escalation news.
• Any retreat in tensions will refocus traders on rates, supporting GBP /AUD higher since the BoE is likely to keep pace with the Fed in tightening.
• The pair hit daily high at 1.9044 and was last trading at 1.8935.
• Technical signals are bullish as RSI is at 51, daily momentum studies 14,21 & 30 DMAs track north.
• Immediate resistance is located at 1.8962 (5DMA), any close above will push the pair towards 1.9056 (23.6% fib).
• Immediate support is seen at 1.8880(38.2%fib) and break below could take the pair towards 1.8789 (Lower BB).
Recommendation: Good to buy on dips around 1.8920, with stop loss of 1.8750 and target price of 1.9050.
