• GBP/AUD declined sharply on Thursday as investors looked ahead to parliamentary polls in the country were underway with the Labour Party looking set to win.
• Opinion polls showed the Labour Party winning, replacing the Conservatives after 14 years. Investors believe the market has already priced in the change.
• The pound's recovery has been effected by the Bank of England's cautious attitude to rate cuts relative to European peers.
• Technicals are favouring bearish sentiment as RSI is at 40 and the pair is trading below 5,10 & 11-DMAs.
• Immediate resistance is located at 1.9028 (38.2% fib), any close above will push the pair towards 1.9078 (50%fib)
• Strong support is seen at 1.8952 (23.6% fib)and break below could take the pair towards 1.8919(Lower BB).
Recommendation: Good to sell around 1.8980, with stop loss of 1.9000 and target price of 1.8900
