• GBP/AUD retreated from daily high on Tuesday as Australian dollar gained on risk-on flows and higher commodity prices.
• GBP/AUD continues to trade sideways, bouncing between 1.8980 and 1.8880 range
• Any downside correction is likely to be temporary as barrier at 1.7086 (61.8% fib) is set to restricting lower move.
• Technical signals show RSI is at 67 bullish , daily momentum studies 9, 10 and 11 DMAs are trending upwards.
• Immediate resistance is located at 1.8937 (23.6% fib), any close above will push the pair towards 1.8970 (Higher BB).
• Immediate support is seen at 1.8845 (38.2% fib) and break below could take the pair towards 1.8815 (9 DMA).
Recommendation: Good to buy on dips around 1.8850, with stop loss of 1.8800 and target price of 1.8920.
