FxWirePro: GBP/AUD outlook weaker on renewed downside pressure
• GBP/AUD collapsed on Monday as the fallout from the UK economic stimulus package extended.
• GBP/ AUD recovered a good portion over the massive drop during Asian session. Market likely to remain volatile due to growing global growth uncertainty.
• The pair hit daily low at 1.5924, but recovered back , it was last down 0.02% at 1.6548.
• Technical signals are bearish as RSI is at 28, daily momentum studies 5,9,21 DMA are trending south.
• Immediate resistance is located at 1.6600 (Psychological level), any close above will push the pair towards 1.6711 (5DMA).
• Strong support is seen at 1.6491 (23.6%fib) and break below could take the pair towards 1.6400 (Psychological level).
Recommendation: Good to sell around 1.6550 with stop loss of 1.6650 and target price of 1.6400