• GBP/AUD initially edged lower on Monday but recovered some ground as caution set in ahead of an Australian central bank policy meeting.
• The Reserve Bank of Australia (RBA) is expected to address its stimulus package at a policy meeting on Tuesday, but is likely to remain dovish overall, given the recent coronavirus lockdowns in the country.
• Pair traded in a quiet 1.8358/1.8406 range and was last trading at 1.8394 into the US afternoon.
• Technical signals are mixed as RSI is at 53, daily momentum studies 10,11 and 14 DMAs are trending down.
• Immediate resistance is located at 1.8409 ( 38.2%fib), any close above will push the pair towards 1.8500 (Higher BB).
• Strong support is seen at 1.8355(21DMA ) and break below could take the pair towards 1.8318 (50%fib).
Recommendation: Good to sell around 1.8400, with stop loss of 1.8470 and target price of 1.8320.
