• GBP /AUD strengthened on Monday as sterling was supported by scope for BoE's first 50 bps rate hike this week.
• Investors have shifted to pricing in an 80% chance of a 50 basis point (bps) hike from the BoE, which will announce its decision on Thursday
• The pair hit daily high at 1.7471 and was last trading at 1.7488 at (GMT 17:15).
• Technical are strongly bullish, daily RSI has turned positive, daily momentum studies 5, 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.7471(21DMA), any close above will push the pair towards 1.7501(50% fib).
• Immediate support is seen at 1.7349 (38.2%fib) and break below could take the pair towards 1.7250(Lower BB).
Recommendation: Good to buy on dips around 1.7440, with stop loss of 1.7300 and target price of 1.7510.
