FXstreet.com (San Francisco) - Since finding support at 1.4705 a couple of weeks ago, GBP/AUD has rallied to as highs as 1.5073 on Australian dollar weakness as investors price in possible rate cuts by the Reserve Bank of Australia.
The rally appears to have stalled at key Fibonacci resistance - the 61.8% retracement zone of the 1.5287/1.4704 decline. Daily and Weekly RSI remains in neutral territory and are aiming higher, suggesting the pair may have room to run before a major reversal is seen. In the week ahead, price may encounter resistance at 1.5126 (55-day EMA), while support lies at 1.5007 (overnight peak). GBP/AUD last trades at 1.5055, up 0.7% on the day and up 1.4% for the week.
The rally appears to have stalled at key Fibonacci resistance - the 61.8% retracement zone of the 1.5287/1.4704 decline. Daily and Weekly RSI remains in neutral territory and are aiming higher, suggesting the pair may have room to run before a major reversal is seen. In the week ahead, price may encounter resistance at 1.5126 (55-day EMA), while support lies at 1.5007 (overnight peak). GBP/AUD last trades at 1.5055, up 0.7% on the day and up 1.4% for the week.
