FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (USCAD and EURJPY) for the day)
FxWirePro:GBP/AUD runs out of steam but maintains bullish outlook
• GBP/AUD initially dipped on Wednesday but recovered some ground as investor focus turned to the Bank of England policy announcement on Thursday.
• Money markets are currently pricing in a greater than 90% chance of an outsized 50 basis point rate hike at Thursday's meeting
• GBP/AUD remains bullish, only a break and daily close above 1.7381 (61.8% fib) will shift bias to the downside.
• Technical are bullish, daily RSI is negative at 52, daily momentum studies 9 and 10 DMAs are trending up.
• Immediate resistance is located at 1.7513 (38.2% fib), any close above will push the pair towards 1.7563 (100DMA).
• Strong support is seen at 1.7443 (50% fib) and break below could take the pair towards 1.7404(14DMA).
Recommendation: Good to buy around 1.7480, with stop loss of 1.7380 and target price of 1.7560