- GBP/AUD is trading in an extremely narrow range, intraday bias remains neutral.
- The pair is consolidating break above trendline 0.7335. Downside finds immediate support at 5-DMA at 1.7346.
- The pair is extending upside after bouncing off 100-DMA support on Jan 11th trade.
- Technical studies are biased higher. RSI above 50 levels and biased higher.
- We see scope for test of 23.6% Fib retrace of 1.61625 to 1.79966 rally at 1.7563 ahead of 1.79 levels.
- Break below 5-DMA may see weakness till 20-DMA at 1.7289. We see bullish invalidation below 100-DMA.
Support levels - 1.7347 (5-DMA), 1.7289 (20-DMA), 1.7163 (100-DMA)
Resistance levels - 1.7403 (upper Bollinger Band), 1.7563 (23.6% Fib retrace of 1.61625 to 1.79966 rally), 1.76
Recommendation: We prefer to wait for clear directional bias.
FxWirePro Currency Strength Index: FxWirePro's Hourly EUR Spot Index was at -133.091 (Bearish), while Hourly GBP Spot Index was at 108.667 (Bullish) at 0730 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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