- GBP/AUD fails to hold break above 200-DMA, slips lower after dovish BoE overnight.
- The Sterling seems to be extending the BoE induced sell-off and is capped below 20-DMA at 1.6550.
- Intraday bias has turned neutral. RSI and Stochs have turned lower, but MACD is showing a bullish crossover on signal line.
- We see scope for further upside only on decisive break above 200-DMA at 1.6685. Test of trendline at 0.69 then likely.
- The pair closed below 20-DMA support at 1.6580 on Thursday, we see scope for test of trendline at 1.6330.
Support levels - 1.6427 (Jan 31 low), 1.64, 1.6330 (trendline), 1.63 (July 27 low)
Resistance levels - 1.6533 (5-DMA), 1.6550 (20-DMA), 1.66, 1.6686 (200-DMA)
Recommendation: Good to go short on rallies around 1.65/1.6520, SL: 1.66, TP: 1.6425/ 1.64/ 1.6330.
FxWirePro Currency Strength Index: FxWirePro's Hourly GBP Spot Index was at -132.114 (Bearish), while Hourly AUD Spot Index was at 118.216 (Bullish) at 0640 GMT. For more details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.
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