• GBP/AUD gained on Wednesday as spike in COVID-19 cases in Australia weighed on Australian dollar.
• The prospect of an extended lockdown in Australia's largest city of Sydney loomed as highly infectious Delta variant led to daily rise in COVID-19 cases .
• The pair was trading up 0.10 percent at 1.8554 after reaching daily low at 1.8521.
• Technical signals are bullish as RSI is at 60, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.8565 (38.2%fib ), any close above will push the pair towards 1.8595(Higher BB).
• Strong support is seen at 1.8504(50%fib) and break below could take the pair towards 1.8465 (11DMA).
Recommendation: Good to buy on dips around 1.8550, with stop loss of 1.8430 and target price of 1.8650.
