FxWirePro: GBP/AUD reverses recent rally, bias back to downside
• GBP/AUD declined on Thursday as risk of sharper UK economic slowdown weighed on GBP.
• The inflation figures, released on Wednesday ,came in above 10%,hot CPI data increased another probability of BoE hike . UK GDP will be negatively impacted by BoE rate hikes.
• The is pair heading towards the 23.6%fib, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 47, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.7310 (14 DMA ), any close above will push the pair towards 1.7409(38.2%fib).
• Strong support is seen at 1.7210(23.6%fib) and break below could take the pair towards 1.7077(Lower BB).
Recommendation: Good to sell on around 1.7260, with stop loss of 1.7370 and target price of 1.7130
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