FxWirePro: GBP/AUD reverses recent rally, bias back to downside

• GBP/AUD declined on Monday   as   concerns over the solvency of China Evergrande group 3333.HK triggered a sell-off in sterling.

• Sterling’s decline followed a series of weak data that dampened tough expectations from the Bank of England ahead of the MPC rate announcement on Thursday.

• At GMT 18:28, the pair was trading 0.11% lower at 1.8862, lowest  since Sep 14th.  

• From a technical viewpoint, the moving averages are pointing downwards, while the RSI  is strongly bearish at 47.85.

•  Immediate resistance is located at 1.8932( 23.6%fib), any close above will push the pair towards 1.9000 ( Higher BB).

•  Strong support is seen at 1.8789 (38.2%fib ) and break below could take the pair towards 1.8702 (50% fib).

Recommendation: Good to sell around 1.8860, with stop loss of 1.9000 and target price of 1.8770.