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FxWirePro: GBP/AUD holds above 1.8500 but upside is limited

• GBP/AUD retreated on Monday from highs as  the pair was weighed down on diminishing BoE rate hike expectations.

• Investors took the view the Bank of England would keep interest rates on hold to assess its economic impact before tightening monetary policy.

• Bulls will need a clear 1.8623 ( 38.2% fib) to take greater control, failure to break higher will spur fresh downward momentum.

• Technical signals are mixed as RSI is at 48, daily momentum studies  5, 30 DMAs are trending north. 

•  Immediate resistance is located at 1.8532 (50%fib ), any close above will push the pair towards 1.8621(38.2%fib).

• Strong support is seen at 1.8486 (5DMA) and break below could take the pair towards 1.8433 (61.8% fib).

Recommendation: Good to buy on dips around 1.8500, with stop loss of 1.8400 and target price of 1.8600.
 

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