• GBP/ AUD staged a sharp recovery on Wednesday as hint of progress in Brexit trade talks boosted sterling.
•Though COVID and negative-rate speculation remain potential head winds for sterling, hopeful for a last-minute Brexit deal before the Oct.15 UK deadline is outweighing other factors for now.
• The pair currently is approaching resistance at 1.8200 (38.2% fib). A break above 1.8200 would unmask 1.8300 level in the short term.
• Technical signals show the pair could gain more ground in the short-term as RSI is at 58,while moving averages and MACD are trending higher.
• Immediate resistance is located at 1.8200 ( 38.2%fib), any close above will push the pair towards 1.8283 (Higher BB).
• Immediate support is seen at 1.8089(100 DMA) and break below could take the pair towards 1.8068(50%fib).
Recommendation: Good to buy around 1.8140, with stop loss of 1.8050 and target price of 1.8300
