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FxWirePro: GBP/AUD downside pressure builds, key support levels in focus

• GBP/AUD declined on Thursday as widening Fed-BoE rate divergence, Russian saber-rattling ,Chinese economic slowdown fears weighed on GBP.

• The is pair heading towards the 23.6% fib, as the outlook for pound  turns more negative. Only a break and daily close above 50% fib at 1.7870 will shift bias to the upside.

•   Technical signals are bearish as RSI is at 44, daily momentum studies  5, 9 and 10 DMAs are trending down.

• Immediate resistance is located at 1.7594 (14DMA), any close above will push the pair towards 1.7671 (38.2% fib).

• Immediate support is seen at 1.7442 (23.6% fib) and break below could take the pair towards 1.7306 (Lower BB).

Recommendation: Good to sell on rallies around 1.7550, with stop loss of 1.7650 and target price of 1.7440
 

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