GBP/AUD chart on Trading View used for analysis
- GBP/AUD consolidates previous sessions gains, trades slightly weaker at 1.8169.
- The pair is struggling to break above 1.82 handle, bias is bullish.
- Data released earlier today showed UK monthly GDP rose above expectations in July while manufacturing output contracted. At the same time, the UK trade deficit contracted less than expected.
- The UK monthly GDP rose 0.3% in July, up from 0.2% expected while UK manufacturing output fell -0.2% m/m, missing the expectations of a 0.2% increase.
- Renewed hopes for a passable Brexit deal surface as the EU begins to thaw their frigid positions, supporting the pound.
- The pair finds stiff resistance at 200W SMA at 1.8348, break above will see further upside. Scope then for test of 1.90 (channel top).
Support levels - 1.81, 1.8028 (5-DMA), 1.7808 (21-EMA)
Resistance levels - 1.8240 (May 9 high), 1.8348 (200W SMA), 1.84
Recommendation: Good to stay long on dips, SL: 1.8020, TP: 1.8240/ 1.8340/ 1.84
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 142.235 (Bullish), while Hourly AUD Spot Index was at -33.8539 (Neutral) at 0845 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
