- GBP/AUD spikes past crucial 200-DMA as the British Pound surged across the board after UK PM May called for snap elections.
- Bullish RSI divergence on daily charts along with breakout above 200-DMA confirms upside in the pair.
- Price action is holding above daily cloud and momentum studies are bullish.
- Upside in the pair is currently capped by major trendline resistance at 1.7070, break above to see further upside traction.
- Next bull target likely at 1.76 (38.2% Fib retrace of 2.0530 to 1.5789 fall). On the flipside, we see bullish invalidation on close below 200-DMA.
- 200-DMA at 1.6711 is major support on the downside, while immediate resistance is seen at 1.76 (38.2% Fib retrace of 2.0530 to 1.5789 fall)
Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-pivotal-near-200-DMA-good-to-go-long-on-break-above-646256) has hit TP1&2.
Recommendation: Book partial profits at highs, hold for 1.7175/ 1.7260
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 130.32 (Bullish), while Hourly AUD Spot Index was at -117.796 (Bearish) at 0720 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
