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FxWirePro: GBP/AUD uptrend gains momentum, as positive sentiment builds

• GBP/AUD strengthened on Tuesday  as increased risk-appetite boosted sterling.

• Markets have rallied behind sterling as investors gained renewed confidence in the currency as the latest economic data revealed that the UK avoided a recession.

• A rally towards is  1.8777 level is  possible if  GBP/AUD bulls overcome resistance at 1.8702.

• Technical are strongly bullish, daily RSI is positive at 71, daily momentum studies 14  and 21 DMAs are trending up. 

• Immediate resistance is located at 1.8702 (Daily high), any close above will push the pair towards 1.8777 (23.6%fib).

• Strong support is seen at 1.8622 (5DMA) and break below could take the pair towards 1.8560 (38.2%fib).

Recommendation: Good to buy on  around 1.8650, with stop loss of 1.8500 target price of 1.8750

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