• GBP/AUD ran into resistance on Wednesday after ticking up from 1.9650.
• GBP has been consolidating of late, partly on optimism that loose fiscal policy would boost Britain’s economy.
• Currently, the 1.9537 (38.2 % fib) barrier is restricting lower move, will likely be a speed bump to bears.
• Technical signals are bullish as RSI is at 64.45, daily momentum studies 5, 9 and 10 DMAs are trending north.
• On the upside, Immediate resistance is located at 1.9776 (Higher BB ), any close above will push the pair towards 1.9800(Psychological level).
• On the downside, strong support is seen at 1.9664 (23.6% fib) and break below could take the pair towards 1.9541(38.2% fib).
Recommendation: Good to buy on dips around 1.9550, with stop loss of 1.9400 and target price of 1.9850.
