• GBP/AUD declined on Wednesday as higher oil prices and increased risk appetite in the market supported Australian dollar.
• Oil prices rose on Wednesday after a larger-than-expected drawdown in U.S. inventories.
•The pair reaches 1.8496 after extending south from 1.8607 (Daily high). 1.9720 is the lowest level since 16th Dec 2021.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 47 bearish, daily momentum studies 9, 11 and 21 DMAs are trending down.
• Immediate resistance is located at 1.8541 (50%fib),any close above will push the pair towards 1.8595 (20DMA ).
• Immediate support is seen at 1.8542 (38.2% fib) and break below could take the pair towards 1.8358(Lower BB ).
Recommendation: Good to sell below 1.8500, with stop loss of 1.8620 and target price of 1.8400
