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FxWirePro: GBP/AUD set for bigger drop, but close below key fibo needed

• GBP/AUD declined on Tuesday as Australian dollar was buoyed after surprise RBA hike.

• The Reserve Bank of Australia (RBA) lifted its cash rate by 25 basis points to 0.35%, the first hike in more than a decade and larger than the 15 basis points widely expected.

• Selling pressure will remain in the short-term, only a move above 1.7800 will shift the bias higher.

• Daily RSI s imply bearish momentum is intact. The MACD is also moving with a stronger negative momentum.

• Immediate resistance is located at 1.7662( 5DMA), any close above will push the pair towards 1.7280 (38.2% fib)

• Support is seen at 1.7555 (38.2% fib) and break below could take the pair towards 1.7440 (Lower BB).

Recommendation: Good to sell on rally around 1.7610, with stop loss of 1.7700 and target price of 1.7500.
 

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