FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(GBPJPY and AUDUSD) for the day
FxWirePro:GBP/AUD attracts selling interest, vulnerable to more downside
• GBP/AUD declined on Tuesday after Reserve Bank of Australia (RBA) left its cash rate at a record low.
• Australian dollar has benefitted from fresh policy from heightened speculation that the RBA could bring an earlier end to their QE programme next year.
•The pair extended its drop to hit 1.8579, daily low, it was last down 0.02% on the day.
• The pair is approaching to testing 1.8579 (50%fib ). A break under 1.8579 would unmask 1.8500 level in the short term.
• Immediate resistance is located at 1.8669 (61.8%fib ), any close above will push the pair towards 1.8726 (5DMA).
• Immediate support is seen at 1.8579 (50%fib ), break below could take the pair towards 1.8494(138.2%fib).
Recommendation: Good to sell around 1.7970 with stop loss of 1.8060 and target price of 1.7880