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FxWirePro: GBP/AUD recovery facing a steep rock, likely to falter

• GBP/AUD recovery is encountering significant resistance and is likely to falter as investors were cautious ahead of British parliamentary elections.

• Britain heads to the polls on Thursday. The opposition Labour party is widely expected to win, ending 14 years of Conservative government.

• GBP/ AUD remains well below 38.2%fib,Daily  close below 23.6%fib  increase the scope for much bigger drop.

• Technical signals show bearish  as RSI is at 43,while moving averages and MACD are trending down.

• Immediate resistance is located at 1.9061 ( 38.2%fib), any close above will push the pair towards 1.9125 (50%fib).

• Immediate support is seen at 1.8974 (23.6%fib) and break below could take the pair towards 1.8916 (Lower BB).

Recommendation: Good to sell around 1.9030, with stop loss of 1.9100 and target price of 1.8950

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