FxWirePro: GBP/AUD runs out of steam but maintains bullish outlook

• GBP/ AUD strengthened on Friday as sterling was supported by increased  risk sentiment ahead of   August 4th  BoE meeting.

• Money markets currently suggest a bold 50 basis point hike from the BoE on Aug. 4 is much more likely than a conservative 25 bps increase.

• The pair  hit daily high at 1.7465 and was last trading at 1.7405. A break and daily close above 1.7479 (50%fib) will accelerate further gains.

• Technical signals show the pair could gain more ground in the short-term as RSI is rising,while moving averages 5,9 and 11 DMA’s are trending higher. 

• Immediate resistance is located at 1.7479(50%fib), any close above will push the pair towards 1.7561 (July 18th high).

• Immediate support is seen at 1.7376 (11DMA) and break below could take the pair towards 1.7339 (38.2%fib).

Recommendation: Good to buy around 1.7400, with stop loss of 1.7300 and target price of 1.7500
 

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