- Release of UK retail sales data, showing a monthly growth of 0.3% (vs. 0.2% expected), did little to provide any fresh boost to the British Pound.
- GBP/AUD breaks major trendline support at 1.6360, is currently trading at 1.6251 after hitting lows at 1.6189.
- Technical studies are bearish, price action has breached triangle base in the 'Symmetric Triangle' pattern.
- Break below 1.6360 (triangle base) has raised scope for further downside. Scope now for test of 1.6040 levels.
Support levels - 1.6189 (session lows), 1.6101 (88.6% Fib), 1.6040 (trendline support)
Resistance levels - 1.6276 (78.6% Fib retrace of 1.5902 to 1.7650 rally), 1.63, 1.6390 (5-DMA), 1.64
Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-tests-trendline-support-at-16360-good-to-go-short-on-break-below-855944) has hit all targets.
Recommendation: Book partial profits, lower trailing stop to 1.6360, target 1.6190/ 1.61/ 1.6040
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -84.0183 (Bearish), while Hourly AUD Spot Index was at 136.585 (Bullish) at 1230 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
FxWirePro launches Absolute Return Managed Program. For more details, visit http://www.fxwirepro.com/invest.
