FxWirePro: GBP/AUD extends major trendline breakout, hits fresh 6-month highs at 1.7576, bias higher

• GBP/AUD is extending upside after breakout of major trendline resistance at 1.7355.
   
• The pair has breached weekly 100-SMA at 1.7528 and is currently trading around 1.7570 levels.
   
• Technical indicators are highly bullish. RSI and Stochs are biased higher and RSI shows strong momentum at above 50 levels.
   
• Technical studies on weekly charts also support upside. Further, MACD on monthly charts is showing a bullish crossover on signal line.
   
• On weekly close above 100-W SMA, we see scope for test of next major resistance at 1.7650 (May 2017 high).
   
• On the flipside, we see bearish invalidation only on close below 20-DMA at 1.7236.

Support levels - 1.7528 (weekly 100-SMA), 1.7459 (5-DMA), 1.74, 1.7343 (23.6% Fib retrace of 2.2372 to 1.5789 fall), 1.7236 (20-DMA)

Resistance levels - 1.76, 1.7650 (May 2017 high), 1.7802 (Sept 15 high)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-Trade-Idea-1017345) is proceeding well.

Recommendation: Bias higher, stay long.

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 110.277 (Bullish), while Hourly AUD Spot Index was at -120.603 (Bearish) at 0400 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.

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