• GBP/AUD declined sharply on Thursday but cut some of its earlier losses as the pair failed to breach support at 1.7810 (50%fib).
• GBP/AUD traded as low as 1.7810 before recovering some ground to trade at 1.7873
• The is pair heading towards 50%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 47, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7904 (5DMA ), any close above will push the pair towards 1.7938 (61.8%fib ).
• Strong support is seen at 1.7810 (50%fib) and break below could take the pair towards 1.7727 (Lower BB).
Recommendation: Good to sell on around 1.7880, with stop loss of 1.8000 and target price of 1.7800
