- GBP/AUD extends grind higher, but overall caution seen as the next round of Brexit negotiations start.
- Near term bias remains lower, the pair is trading in a downward sloping channel.
- Intraday charts show some strength in the pair which is at the time of writing trading 0.53% higher at 1.6324.
- 20-DMA at 1.6361 is stiff resistance on the upside, break above could see further gains.
- On the flipside, immediate support is seen at 5-DMA, weakness likely on break below.
- On the data front, UK Nationwide House Price Index will be in focus.
- On the downside, the pair is struggling to close below 78.6% Fib retrace of 1.5789 to 1.76509 rally at 1.6187.
- Break below likely to see test of 1.6040 (trendline and then 1.60 (88.6% Fib). Violation at 1.60 finds little support till channel base at 1.5895.
Support levels - 1.63, 1.6231 (5-DMA), 1.62, 1.6187 (78.6% Fib retrace of 1.5789 to 1.76509 rally)
Resistance levels - 1.6361 (20-DMA), 1.64, 1.6485 (Feb 9th high), 1.6513 (23.6% Fib retrace of 1.76509 to 1.61625 fall)
Recommendation: Watch out for break above 20-DMA to go long, target 1.64/ 1.6485/ 1.65
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest
