FxWirePro: GBP/AUD neutral in the near-term, scope for downward resumption
• GBP/AUD declined on Tuesday as soft UK PMI data weighed on pound.
• S&P Global’s flash Composite Purchasing Managers’ Index (PMI), a monthly gauge of the services and manufacturing industries, fell to 51.8 in May from 57.6 in April
• The pair currently is approaching support at 1.7610 (50% fib ). A break under would unmask 1.7500 level in the short term.
• Technical signals are bearish as RSI is at 49, daily momentum studies 5, 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7650 ( 5 DMA), any close above will push the pair towards 1.7760 (38.2% fib)
• Support is seen at 1.7610 (50% fib ) and break below could take the pair towards 1.7449 (50 DMA).
Recommendation: Good to sell on rally around 1.7650, with stop loss of 1.7750 and target price of 1.7580