• GBP/AUD declined on Friday as concerns about the UK’s deteriorating economic outlook continued to weigh on pair.
• Sterling has suffered sharp losses in the recent days on concerns that a halt in Russian gas supplies to Europe will exacerbate inflationary pressure already running in double digits.
•The pair reaches 1.6887 after extending south from 1.6928 (Daily high). 1.6887 is the lowest level since 30th Aug.
• Technical signals show the pair could lose more ground in the short-term as RSI is turning sharply lower, daily momentum studies 9, 11 and 21 DMAs are trending down.
• Immediate resistance is located at 1.6988(9DMA),any close above will push the pair towards 1.7091(38.2% fib).
• Immediate support is seen at 1.6886 (23.6% fib) and break below could take the pair towards 1.6840(Higher BB ).
Recommendation: Good to sell below 1.6900, with stop loss of 1.6990 and target price of 1.6820
