• GBP /AUD strengthened on Tuesday as sterling was buoyed by market relief over the Scottish election results.
• The pound was also benefitted by the Bank of England starting to tighten its bond buying program a week ago, on the back of an improving economic outlook.
• The pair hit daily high at 1.8068 and was last trading at 1.8058 at (GMT 16:29).
• Bulls will need a clear 1.9831 ( 61.8% fib)to take greater control, failure to break higher will spur fresh downward momentum.
• Immediate resistance is located at 1.8074 (Higher BB), any close above will push the pair towards 1.8093 (61.8% fib).
• Immediate support is seen at 1.7994 (50%fib) and break below could take the pair towards 1.7941 (9DMA).
Recommendation: Good to sell around 1.8080 with stop loss of 1.8140 and target price of 1.8000.
