GBP/AUD rises again toward 1.7000, more gains ahead?

GBP/AUD bounced sharply today from 6-day lows at 1.6850 and rose to test last week highs above 1.7000. The move was boosted by a slide of the Australian dollar across the board. 

The Aussie weakened after the decision and the statement from the Reserve Bank of Australia. The central bank kept the key rate unchanged at 1.50% as expected. The tone of the statement did not signal a shift to a more hawkish stance and sent the Aussie to the downside.  

RBA: Steady as she goes - ANZ

RBA: Stays patient, but the next move is set to be up - HSBC

On the opposite, last week, comments from Mark Carney, governor of the Bank of England, point that a rate hike could take place if the economy improves. An unexpected change in the perception of Carney, that only a few days before, said that it was not the time to raise rates. The new approach boosted the pound in the market. 

GBP/AUD rose from 2-month lows at 1.6600 and reached 1.7044. But failed to hold above 1.700 and pulled back. The slide found support today at 1.6850, above the 20-day moving average. Today it peaked at 1.7030 but again the pair is facing difficulties holding on top of 1.7000. 

Technical outlook 

The pair holds a bullish tone, reinforced today after the Asian session rally. The pound needs to consolidate on top of 1.7000 in order to open the doors to more gains. The next strong resistance is seen at 1.7140/50. 

On the other direction, a break below 1.6830 would remove the current bullish bias, favoring a slide toward 1.6700.