FxWirePro:GBP/AUD bulls look past stalled EU-UK trade talks,scope for further upside
• GBP /AUD rally extended above 1.8300 on Friday as bulls continued to shrug off stalled EU-UK talks.
• Next round of EU-UK talks is to run until October 2nd .BoE MPA also is in focus next week, no change to rates or QE is expected.
• The pairs rise above the 1.8230 (38.2% fib) has reinforced the growing bullish strength, putting focus on 1.8400 ( Psychological level.
• Technical signals favours bullish sentiment, RSI is at 63 and pair trades above 5 & 9-DMAs.
• Immediate resistance is located at 1.8367 (23.6% fib), any close above will push the pair towards 1.8400 (Psychological level).
• Immediate support is seen at 1.8230 (38.2% fib) and break below could take the pair towards 1.8175 (55 DMA).
Recommendation: Good to buy on dips around 1.8300, with stop loss of 1.8230 and target price of 1.8400.