• GBP/AUD rose on Wednesday as expectations that the Bank of England will raise interest rates as early as next month boosted pound.
• The pound strength was also boosted by stronger stock markets.
• Any downside correction is likely to be temporary as barrier at 1.8691 (38.2%fib) is set to restricting lower move.
• Technical signals are bullish as RSI is at 63, daily momentum studies 5 DMA, 9 EMA are trending up.
• Immediate resistance is located at 1.8778 (23.6%fib ), any close above will push the pair towards 1.8802 (Higher BB).
• Strong support is seen at 1.8708 (5 DMA) and break below could take the pair towards 1.8691 (38.2%fib).
Recommendation: Good to buy on dips around 1.8760 with stop loss of 1.8690 and target price of 1.8840.
