• GBP/AUD extended its yesterday’s bounce as reduced coronavirus angst gave the pair a lift, despite lingering concerns.
• Any downside correction is likely to be temporary as barrier at 1.9515 (lower ascending trend line) is set to restricting lower move.
• Technical signals are bullish as RSI is at 46, daily momentum studies 50 DMA, 5 EMA are trending up.
• On the upside, Immediate resistance is located at 1.9849 ( 9 DMA), any close above will push the pair towards 2.0003 ( 21 DMA).
• On the downside, strong support is seen at 1.9656 (5 DMA) and break below could take the pair towards 1.9515 (Lower trendline).
Recommendation: Good to buy around 1.9700, with stop loss of 1.9515 and target price of 2.0000.
