• GBP/ AUD strengthened on Monday after a rate cut from China disappointed markets weighing on Australian dollar .
• The Antipodean currencies often function as a liquid proxy for the yuan, owing to the region's exports to China.
• At GMT 17:27, the pair was trading up 0.15percent at 1.9900 ,after hitting daily high at 1.9932.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 70,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.9917(23.6%fib), any close above will push the pair towards 1.9972(Aug 17th high).
• Immediate support is seen at 1.9830( 5DMA) and break below could take the pair towards 1.9659(38.2%fib).
Recommendation: Good to buy around 1.9880, with stop loss of 1.9740 and target price of 2.0000
