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FxWirePro: GBP/AUD falls on weak UK retail sales data, good o sell on rally

• 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

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