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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
 

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