• GBP/AUD strengthened on Thursday as Australian dollar weakened as the Australia racked up biggest daily rise in Covid-19 infections.
• The rise in Delta variant cases across the Australia is weighing on hopes the economy recovery
• At GMT 22:18, the pair was trading 0.65% higher at 1.9078, highest since 20th May 2020.
• Any downside correction is likely to be temporary as barrier at 1.8992 (5DMA) is set to restricting lower move.
• Technical signals are bullish as RSI is at 66, daily momentum studies 5 DMA, 9 EMA are trending up.
• Immediate resistance is located at 1.9093 (Higher BB ), any close above will push the pair towards 1.9128 (23.6%fib).
• Strong support is seen at 1.9027 (38.2%fib) and break below could take the pair towards 1.8992 (5DMA).
Recommendation: Good to buy on dips around 1.9040 with stop loss of 1.8930 and target price of 1.9110.
