• GBP/ AUD strengthened on Tuesday as pound benefited from optimism following Rishi Sunak's victory in the race to become the new UK prime minister.
• Rishi Sunak became Britain's third prime minister in two months on Tuesday, tasked with tackling a mounting economic crisis and a warring political party.
• The pair currently is approaching resistance at 23.6%fib. A break above 23.6%fib would unmask 1.8200 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 63,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.8059( 23.6%fib), any close above will push the pair towards 1.8209 (Oct 17th high).
• Immediate support is seen at 1.7855 (11DMA) and break below could take the pair towards 1.7672 (38.2%fib).
Recommendation: Good to buy around 1.7960 with stop loss of 1.7810 and target price of 1.7140
