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FxWirePro: GBP/AUD attracts selling interest, vulnerable to more downside

• GBP/AUD declined on Thursday   as worsening risk appetite weighed on the pair.

• Initial boost from the ECB's surprisingly bold 50bp rate hike faded as growth worries crept into President Christine Lagarde's press conference.

• The pair dropped to test 1.7268(50% fib ). A break under  would unmask 1.7500 level .

• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 35.

•Immediate resistance is located at 1.7388(5 DMA) , any close above will push the pair towards 1.7480 (38.2% fib).

• Immediate support is seen at 1.7268(50% fib ) and break below could take the pair towards 1.7176 (5th May low ).

Recommendation: Good to around 1.7320, with stop loss of 1.744 0and target price of 1.7200.

 

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