• GBP/AUD strengthened on Tuesday as Australian dollar was weighed down by lower oil prices.
• Rising concerns over a third wave of the coronavirus pandemic amid slow vaccine rollouts in Europe hurt oil on Tuesday.
• GBP/AUD hits 1.8016 after rallying off from 1.7868 (intra-day low), it was last trading at 1.7987 at 18:21 GMT.
• The pair has traded a 143pip range on Tuesday. Unless there is major news uptrend is set to extend.
• Technical are bullish, daily RSI is higher at 54, daily momentum studies 14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.8016 (38.2%fib ), any close above will push the pair towards 1.8092 (Higher BB).
• Strong support is seen at 1.7836 (50%fib) and break below could take the pair towards 1.7772 (Lower BB).
Recommendation: Good to buy around 1.7970, with stop loss of 1.7780 and target price of 1.8050
