• GBP/AUD initially gained on Friday after upbeat UK retail sales data but gave up some ground due to thin holiday liquidity.
•Data showed retail sales in November jumped by much more than expected, increasing by 1.3% from October, boosted by discount sales. Upbeat UK retail sales beat trumped the GDP revisions.
• GBP/AUD holding just above 23.6%fib support. Daily close below 23.6%fib will increase scope for much bigger drop.
• Technical highlight downside risks for GBP/AUD, with momentum studies, 5, 10 and 21 DMAs tracking south.
• Immediate resistance is located at 1.8755 (38.2%fib ), any close above will push the pair towards 1.8784 (Dec 22nd high).
• Immediate support is seen at 1.8633 (23.6%fib ), break below could take the pair towards 1.8592 (Lower BB).
Recommendation: Good to sell around 1.8680 with stop loss of 1.8780 and target price of 1.8600
