- GBP/AUD bounces off 20-DMA support, extends upside for 2nd straight session.
- The pair finds stiff resistance at 200W SMA at 1.8381. Price struggling to break above.
- The major is extending choppy trade around 200W SMA for the 4th consecutive week.
- Technical studies on weekly charts are biased higher. We see RSI strength at 70 levels and momentum is highly bullish.
- Breakout at 200W SMA could propel the pair higher. Scope then for test of channel top at 1.8775 ahead of 61.8% Fib at 1.9857.
Support levels - 1.8298 (5-DMA), 1.8208 (20-DMA), 1.7919 (50-DMA)
Resistance levels - 1.85, 1.8775 (channel top), 1.9080 (50% Fib)
Recommendation: Watch out for breakout above 200W SMA for further upside.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 150.861 (Bullish), while Hourly AUD Spot Index was at -140.566 (Bearish) at 0840 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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