• GBP/AUD strengthened on Thursday as improving outlook for UK economy boosted sterling across the board.
• British economic data has largely come in slightly better than feared, that in turn has driven market expectations of more interest rate hikes from the Bank of England (BOE).
• A rally towards is 1.8735 level is possible if GBP/AUD bulls overcome resistance at 1.8671 (23.6%fib ).
• Technical signals are bullish as RSI is at 69, daily momentum studies 5 DMA, 9 EMA are trending up.
•Immediate resistance is located at 1.8671 (23.6%fib ), any close above will push the pair towards 1.8735(Higher BB).
• Strong support is seen at 1.8483(5DMA) and break below could take the pair towards 1.8452 (38.2%fib).
Recommendation: Good to buy on dips around 1.8640 with stop loss of 1.8550 and target price of 1.8730
