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FxWirePro: GBP/AUD attracts selling interest, could be on verge of a bigger drop

 • GBP/AUD declined on Wednesday as Australian dollar gained on bigger-than-expected  rate increase  and higher commodity prices.

• Oil prices rose about 5% as the European Union, the world's largest trading bloc, spelled out plans to phase out imports of Russian oil.

• GBP/AUD dipped on these influences, hit daily low at 0.7133 .Focus now shifts to Thursday's BoE MPC meeting.

• Technical signals show RSI is at 38 bearish , daily momentum studies 9, 10 and 11 DMAs are trending southewards.

• Immediate resistance is located at 1.7578(38.2% fib), any close above will push the pair towards 1.7620 (14DMA).

• Immediate support is seen at 1.7366 (23.6% fib) and break below could take the pair towards 1.7324 (Lower BB).

Recommendation: Good to sell around 1.7400, with stop loss of  1.7510 and target price of 1.7320.


 

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