• GBP/AUD declined sharply on Tuesday as Australian dollar outperformed sterling as investors focused on the prospect for an eventual economic recovery from the coronavirus pandemic.
• Traders bought riskier currencies even after signs of setbacks in the battle to contain the coronavirus.
• At GMT 14:24, the pair was trading down 0.51 percent at 1.7956, lowest since Sep 12th 2019.
• Technical signals highight bearish momentum , the 9, 11,14 DMAs trend south, while RSI is heading south at 29.
• On the upside, immediate resistance is located at 1.8083 (5 DMA ), any close above will push the pair towards 1.8174 (11 DMA ).
• On the downside, immediate support is seen at 1.7847 (Lower BB ) and break below could take the pair towards 1.7800 (Psychological level ).
Recommendation: Good to sell around 1.7960, with stop loss of 1.8200 and target price of 1.7850.
