FxWirePro: GBP/AUD capped by the 38.2% fibonacci, good to sell on rallies
• GBP/AUD strengthened on Wednesday as investor sentiment improved UK’s budget announcement.
• GBP/AUD rallied off from 1.7807 (intra-day low), lift stops after finding resistance at 1.7946 (38.2% fib).
• GBP/AUD remains vulnerable, only a break and daily close above 1.7946 (38.2% fib)will shift bias to the upside.
• Technical are bearish, daily RSI is negative at 49, daily momentum studies 14 and 21 DMAs are trending down.
• Immediate resistance is located at 1.7946 (38.2% fib), any close above will push the pair towards 1.8018 (Higher BB).
• Strong support is seen at 1.7794 (50%fib) and break below could take the pair towards 1.7715 (Lower BB).
Recommendation: Good to sell on around 1.7915, with stop loss of 1.8030 and target price of 1.7850