• GBP/AUD initially gained on Tuesday but gave up ground as bulls took a breather.
• GBP/AUD surged more than 1% on Monday after Britain and the European Union announced a new deal for post-Brexit trading arrangements for Northern Ireland.
• The pair hit daily high at 1.8022, but retreated , it was last up 0.05% at 1.7095.
• Technical signals are bearish as RSI is at 66, daily momentum studies 5,9,21 DMA are trending north.
• Immediate resistance is located at 1.8022 (23.6%fib ), any close above will push the pair towards 1.8060 (23rd Dec high).
• Strong support is seen at 1.7876 (Daily low) and break below could take the pair towards 1.7774(5DMA).
Recommendation: Good to buy around 1.7860 with stop loss of 1.7700 and target price of 1.7980.
