• GBP/AUD retreated on Friday from highs as the pair ran into key resistance after ticking up from 1.8528.
• GBP has been consolidating against AUD on surprising BoE rate hike and robust UK economic data.
• GBP/AUD remains bullish, only a break and daily close below 1.8463 (50DMA)will shift bias to the downside.
• Technical signals are bullish as RSI is at 51, daily momentum studies 5, 9 and 10 DMAs are trending north.
• Immediate resistance is located at 1.8626 (23.6%fib ), any close above will push the pair towards 1.8700(Dec 1st high).
• Strong support is seen at 1.8509 (38.2% fib) and break below could take the pair towards 1.8463 (50DMA).
Recommendation: Good to buy on dips around 1.8550, with stop loss of 1.8470 and target price of 1.8610.
