• GBP /AUD strengthened on Thursday as sterling was supported after UK parliament backed Prime Minister Boris Johnson's tax hikes to fund health spending and social care.
• GBP /AUD also added to gains after the ECB held rates steady, but signaled it would begin to dial back pandemic emergency bond purchases.
• The current bullish trend is deemed intact as long as the pair does not move below 50%fib fib resistance.
• Immediate resistance is located at 1.8789 (38.2%fib), any close above will push the pair towards 1.8829 (21DMA).
• Immediate support is seen at 1.8780 (11 DMA) and break below could take the pair towards 1.8685 (50%fib).
Recommendation: Good to buy on dips around 1.8770, with stop loss of 1.8700 and target price of 1.8860.
