• GBP/AUD dipped on Tuesday as demand for antipodean currencies increased as a surge in commodity prices lifted Australian dollar.
• The pair was last trading 0.08% higher at 1.8686 slightly lower from daily high at 1.8769.
• Any downside correction is likely to be temporary as barrier at 1.8664 (38.2%fib) is set to restricting lower move.
• Technical signals are bullish as RSI is at 66, daily momentum studies 5 DMA, 9 EMA are trending up.
• Immediate resistance is located at 1.8709(Higher BB ), any close above will push the pair towards 1.8751 (23.6%fib).
• Strong support is seen at 1.8664 (38.2%fib) and break below could take the pair towards 1.8622 (9DMA).
Recommendation: Good to buy on dips around 1.8690 with stop loss of 1.8600 and target price of 1.8750.
