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FxWirePro: GBP/AUD capped by 5-DMA, good to sell on rally

• GBP/AUD strengthened  on Friday as sterling picked up some  gains after the Bank of England (BoE) held interest rates at a 15-year high.

• The BoE left borrowing costs unchanged at 5.25% this week and published forecasts showing the British economy was likely to skirt close to a recession and flat-line in the coming years.

• The pair   repeated failures to push above 1.9098( 5DMA)is discouraging longs.

• Technical outlook is bearish in short-term as RSI has turned lower, moving averages are mixed. 

•  Immediate resistance is located at 1.9046 (5DMA), any close above will push the pair towards 1.9098( 38.2%fib).

• Strong support is seen at 1.8908 (23.6% fib) and break below could take the pair towards 1.8853 (Sep 29th low ).

Recommendation: Good to sell   around 1.9000, with stop loss of 1.9100 and target price of 1.8900
 

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