• GBP/AUD gained some upward traction on Monday as weaker oil prices and remarks from RBA Governor Michele Bullock weighed on Australian dollar.
• Oil prices slipped pressured by concerns over global oversupply, which outweighed ongoing geopolitical tensions in Russia and the Middle East.
• RBA Governor Michele Bullock said Monday that Australia’s economy remains resilient, with slowing inflation and a strong labor market giving the central bank room to ease policy further if needed.
• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 2.0600 level
• Immediate resistance is located at 2.0530 (38.2%fib ), any close above will push the pair towards 2.0588 Sep 18th high).
• Strong support is seen at 2.0378(23.6%fib ), and break below could take the pair towards 2.0320 (Lower BB).
Recommendation: Good to buy around 2.0470 with stop loss of 2.0400 and target price of 2.0600
