- GBP/AUD tests channel top at 1.6465, intraday bias higher, further upside on break above.
- British Pound gained fresh traction after the UK Parliament passed the EU Withdrawal Bill by 326 to 290 votes.
- UK PM May has won a vote on Brexit bill timetable and the Parliament has passed a motion limiting scrutiny of the bill to 8 days.
- UK inflation data due later during the European trading session will be in focus for further direction.
- On the other side, the Aussie remained under pressure after the nation's business confidence index dropped to 5 in August from a reading of 12 last month.
- Technical studies support upside in the pair. We notice bullish divergence on daily charts.
- Cloud on weekly charts weighs on the upside (1.6460). Break above will see test of 200-DMA at 1.6662.
Support levels - 1.6352 (5-DMA), 1.6274 (20-DMA), 1.6187 (78.6% Fib of 1.5789 to 1.76509 rally)
Resistance levels - 1.6460 (weekly cloud base), 1.6465 (channel top), 1.6608 (daily cloud), 1.6662 (200-DMA)
Recommendation: Watch out for channel break to go long, target 200-DMA at 1.6662.
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