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

• GBP/AUD continued its recent descent on Thursday  as markets turned nervous about the impact of rate hikes on the British economy.

• UK GDP data on Friday  will be scrutinized for hints at inflation. A weak UK GDP read  is likely to  put downward pressure on  GBP/AUD.

• The is pair heading towards the 38.2% fib support, as near term direction of the pair is likely to be driven by current price action.  

• Immediate resistance is located at 1.9151(Daily high), any close above will push the pair towards 1.9262 (23.6%fib).

• Strong support is seen at 1.9002 (38.2% fib)and break below could take the pair towards 1.8913 (10DMA).

Recommendation: Good to sell on  around 1.9050, with stop loss of 1.9150, and target price of 1.8940.

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