FxWirePro: GBP/AUD loses momentum but outlook is bullish
• GBP/AUD retreated towards on 1.8900 on Tuesday as risk aversion and profit taking kept gains in check.
•Bullish tones since the BoE became the first major central bank to begin hiking, in December, have begun to ebb.
• Bulls need a rise above the 1.8996 ( 23.6%fib)to regain their vigor for a run at 1.9000 level.
• From a technical viewpoint, the moving averages are pointing upwards, while the RSI is strongly bullishat 64.
• Immediate resistance is located at 1.8962 ( 11th Jan high), any close above will push the pair towards 1.9049 ( Higher BB).
• Strong support is seen at 1.8915(38.2% fib ) and break below could take the pair towards 1.8842(50%fib).
Recommendation: Good to buy around 1.8920, with stop loss of 1.8820 and target price of 1.9050.