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FxWirePro :GBP/AUD dips below lower range, bearish bias increases

• GBP/AUD declined on Tuesday   as    Australian dollar was boosted after RBA raised interest rates and warned that even further tightening might be needed.

• Reserve Bank of Australia (RBA) lifted rates by 25 basis points to 3.85%, bringing its tightening in the past year to an eye-watering 375 basis points.

•The pair reaches 1.8626 after extending south from 1.8864(Daily high). 1.8930 is the lowest level since 25th April.

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

• Immediate resistance is located at 1.8805(38.2%fib),any close above will push the pair towards 1.8849(5DMA ).

• Immediate support is seen at 1.8610(50%fib) and break below could take the pair towards 1.8569(Apr 24th low ).

Recommendation: Good to sell below 1.8720, with stop loss of 1.8850 and target price of 1.8640
 

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