FxWirePro: GBP/AUD finds stiff resistance at 200W SMA at 1.8348, further upside only on break above

GBP/AUD chart on Trading View used for analysis

• GBP/AUD consolidates previous sessions gains, trades slightly weaker at 1.8169.
   
• The pair is struggling to break above 1.82 handle, bias is bullish.
   
• Data released earlier today showed UK monthly GDP rose above expectations in July while manufacturing output contracted. At the same time, the UK trade deficit contracted less than expected.
   
• The UK monthly GDP rose 0.3% in July, up from 0.2% expected while UK manufacturing output fell -0.2% m/m, missing the expectations of a 0.2% increase. 
   
• Renewed hopes for a passable Brexit deal surface as the EU begins to thaw their frigid positions, supporting the pound.
   
• The pair finds stiff resistance at 200W SMA at 1.8348, break above will see further upside. Scope then for test of 1.90 (channel top).

Support levels - 1.81, 1.8028 (5-DMA), 1.7808 (21-EMA)

Resistance levels - 1.8240 (May 9 high), 1.8348 (200W SMA), 1.84

Recommendation: Good to stay long on dips, SL: 1.8020, TP: 1.8240/ 1.8340/ 1.84

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at 142.235 (Bullish), while Hourly AUD Spot Index was at -33.8539 (Neutral) at 0845 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.