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FxWirePro: GBP/AUD strongly bearish despite upside attempts

• GBP/AUD strengthened on Tuesday as Australian dollar attracted sellers after RBA raised its cash rate by 50 basis points, but signaled it was not on a preset path for future rate hikes.

• In its fifth hike since May, the Reserve Bank of Australia (RBA) raised its cash rate to a seven-year high of 2.35%.

• GBP/AUD remains vulnerable, only a break and daily close above 1.7293 (50% fib) will shift bias to the upside.

• Technical are bearish, daily RSI is negitive at 48, daily momentum studies 30  and 50 DMAs are trending down. 

• Immediate resistance is located at 1.7114 (38.2%fib), any close above will push the pair towards 1.7182 (30DMA).

• Strong support is seen at 1.7000(Psychological level) and break below could take the pair towards 1.6911(23.6%fib).

Recommendation: Good to sell  around 1.7100, with stop loss of 1.7230 target price of 1.7000
 

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