• GBP/AUD declined sharply on Tuesday as currency pair continued to face pressure from widespread risk aversion.
• Fears of US recession has been sparked by a surge in the unemployment rate last month and an ongoing stock market sell-off.
• The pair currently is approaching support at 50% fib. A break under would unmask 1.9330 level in the short term.
• Technical signals are bearish as RSI has turned sharply lower, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9583(38.2% fib), any close above will push the pair towards 1.9751(23.6% fib)
• Support is seen at 1.9448(50% fib)and break below could take the pair towards 1.9324 (61.8% fib).
Recommendation: Good to sell around 1.9480 with stop loss of 1.9550 and target price of 1.9400
