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• GBP/AUD declined on Monday as traders waited for outcome of Reserve Bank of Australia’s meeting .
•The Reserve Bank of Australia is expected to back off on previous decision to taper stimulus, as longer COVID19 lockdowns hold back growth.
• Pair slips back below 38.2%fib and is nearing 1.8800 level.
• GBP/AUD remains bullish, only a break and daily close above 1.8700 (61.8% fib) will shift bias to the downside.
• Immediate resistance is located at 1.8873( 38.2%fib), any close above will push the pair towards 1.8981 ( 23.6 % fib).
• Strong support is seen at 1.8791 (50% fib ) and break below could take the pair towards 1.8759 (11DMA).
Recommendation: Good to buy around 1.8850, with stop loss of 1.8750 and target price of 1.8920.
