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FxWirePro:GBP/AUD runs out of steam but maintains bullish outlook

• GBP/AUD initially gained on Monday  but gave up as pound was  hurt by a weak economic outlook and less hawkish Bank of England expectations.   

• BoE looked mainly concerned about risks of a possible recession and a slowdown in the labour market.

• GBP/AUD dipped towards 1.7743  after hitting daily high at 1.7889. A break and daily close above 1.7879 (38.2% fib) will accelerate further gains.  

• Technical are bullish, daily RSI is negative at 53, daily momentum studies  9 and 10 DMAs are trending up. 

• Immediate resistance is located at 1.7807 (Higher BB ), any close above will push the pair towards 1.7879 (38.2% fib).

• Strong support is seen at 1.7690(50%fib) and break below could take the pair towards 1.7516 (61.8%fib).

Recommendation: Good to buy on  around 1.7740, with stop loss of 1.7600  and target price of 1.7850

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