• GBP/AUD rose above 1.9500 level on Thursday as sterling was boosted after data showed British business activity accelerated this month.
• The UK S&P Global Composite Purchasing Managers’ Index climbed to 53.4, up from 52.8. Meanwhile, the services sector PMI surged to 53.3, its highest level since April.
• Investors focus turned to Bank of England Governor Andrew Bailey’s speech at Jackson Hole on Friday.
• A daily close above 38.2%fib will further improve the technical outlook, and open the possibility of a rally towards 1.9600 level
• Technical are bullish, daily RSI is up at 57 , daily momentum studies 9 and 10 DMAs are trending north.
• Immediate resistance is located at 1.9545 (38.2%fib ), any close above will push the pair towards 1.9612 (July 24th high).
• Strong support is seen at 1.9415(50%fib ), and break below could take the pair towards 1.9364 (Aug 13th low).
Recommendation: Good to buy around 1.9500 with stop loss of 1.9440 and target price of 1.9570
