• GBP/AUD dipped initially but recovered some ground as investors digested UK GDP data.
• The British economy dropped by 0.3% in the three months to December, entering a recession in the second half of 2023, after contracting by 0.1% between July and September, according to official data from the Office for National Statistics (ONS).
• A close below 1.9244 (50% fib), would add to sterling's bearish structure, opening the way towards 1.9200 level.
• Technical are bearish, daily RSI has turned lower, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9387(38.2% fib), any close above will push the pair towards 1.8665 (23.6% fib).
• Strong support is seen at 1.9244 (50% fib) and break below could take the pair towards 1.9166(Lower BB).
Recommendation: Good to sell on around 1.8340, with stop loss of 1.8500 and target price of 1.9250
