FxWirePro: GBP/AUD capped at 100-DMA, further upside only on break above

• GBP/AUD upside post BoE rate decision and hawkish guidance paused at 100-DMA at 1.6790.
   
• BoE left policy unchanged with a vote 7-2 to keep interest rates at record low level of 0.25%, as widely expected.
   
• The statement and the minutes were perceived as hawkish and comments from Governor Mark Carney that followed boosted the pound further.
   
• Carney reaffirmed what the BoE said in the statement and added that the possibility of a rate hike has risen.
   
• Technical studies in the pair are bullish, break above 100-DMA will see upside accentuate.
   
• Scope for test of cloud top at 1.6880. Breakout above daily cloud will see further gains.

Support levels - 1.6731 (38.2% Fib), 1.6658 (200-DMA), 1.6595

Resistance levels - 1.6790 (100-DMA), 1.6880 (cloud top), 1.69 (50% Fib retrace of 1.7650 to 1.61625 fall)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-tests-channel-top-at-16465-good-to-go-long-on-break-above-893969) has hit all targets.

Recommendation: Good to go long on break above 100-DMA, SL: 1.6650, TP: 1.6880/ 1.69/ 1.6940

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 127.444 (Bullish), while Hourly AUD Spot Index was at -39.9591 (Neutral) at 0545 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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