• 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
