FxWirePro: GBP/AUD breaks consolidation around 200-DMA, resumes downside, good to stay short on upticks

Refer GBP/AUD chart on Trading View

• GBP/AUD has broken out of consolidation, dips lower to break strong trendline support at 1.7640.
   
• The pair has resumed downside after sideways grind along 200-DMA for the past 2 weeks.
   
• Momentum studies are bearish. RSI below 50, bias lower. DMI support downside.
   
• Price action has dipped below 38.2% Fib retracement and next bear target lies at 50% Fib at 1.7335.
   
• We see bearish invalidation only on breakout above 200-DMA.

Support levels - 1.7391 (June 5 low), 1.7335 (50% Fib)

Resistance levels - 1.7633 (5-DMA), 1.7707 (21-EMA), 1.7733 (200-DMA)

Recommendation: Good to stay short on upticks, SL: 1.7710, TP: 1.7390/ 1.7335/ 1.71

FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -113.665 (Bearish), while Hourly AUD Spot Index was at 72.8718 (Neutral) at 1015 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.