GBP/AUD chart on Trading View used for analysis
- GBP/AUD is extending upside for the 3rd straight session, bias higher.
- The pair has paused upside just shy of 20-DMA resistance at 1.7636, break above will see further gains.
- Aussie dampened, weakens across the board after unexpected miss in Australia's Trade Balance.
- Australia’s trade surplus narrowed to A$2.3 billion in October from A$2.9 billion the previous month.
- Exports remained static but imports surged, rose 3% following -1% in September while exports were steady at +1%.
- Traders largely ignored positive retail sales which were up 0.3% m/m in Oct versus a +0.2% forecast and accelerating from the +0.1% in Sept.
- The pair trades with a bullish bias on daily charts, also a bullish divergence on RSI and Stochs keeps scope for further upside.
- Break above 20-DMA will take the pair higher. Rejection there could see resumption of weakness.
Support levels - 1.7567 (23.6% Fib), 1.7432 (5-DMA), 1.7208 (Dec 3 low)
Resistance levels - 1.7636 (20-DMA), 1.7789 (38.2% Fib), 1.7887 (110-EMA)
Recommendation: Stay long on decisive break above 20-DMA, SL: 1.75, TP: 1.77/ 1.7785/ 1.7885
For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.