- GBP/AUD is consolidating break above major trendline resistance at 1.8070.
- The pair finds stiff resistance at 200W SMA at 1.8348, we see further upside on break above.
- Scope then for test of 50% Fib at 1.90 ahead of 61.8% Fib at 1.9857.
- Technical indicators are biased higher on the weekly charts. Momentum bullish and RSI shows strength at 64 levels.
- On the flip side, rejection at 200W SMA could see weakness.
- The pair is on track to close the week with a Doji formation, which might signal reluctance of bulls to extend gains.
- Weakness till 200-DMA at 1.7783 then likely.
Support levels - 1.7949 (21-EMA), 1.7816 (55-EMA), 1.7783 (200-DMA)
Resistance levels - 1.8243 (5-DMA), 1.8304 (38.2% Fib), 1.85 (Mar 2018 high)
Recommendation: Watch out for break above 200W SMA to stay long. Target 1.83/ 1.85/ 1.90