• GBP/AUD declined on Friday as UK data showed a surprise drop in retail sales in December, as British shoppers bought less, but spent more.
•Data out Friday showed UK retail sales volumes were down by 5.8% compared with December 2021, the biggest fall for that month in records going back to 1997.
• The pair dropped to test 1.7762(38.2% fib ). A break under would unmask 1.7700 level in the short term .
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 48.
•Immediate resistance is located at 1.7975(50%fib ) , any close above will push the pair towards 1.8014 (61.8%fib).
• Immediate support is seen at 1.7762(38.2% fib ) and break below could take the pair towards 1.7715 (5DMA ).
Recommendation: Good to around 1.7800, with stop loss of 1.7890and target price of 1.7700
