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FxWirePro:GBP/AUD downside pressure builds, key support level in focus

• GBP/AUD slipped lower on Monday as Australian dollar rose after China left benchmark lending rates unchanged at a monthly fixing on Monday, matching expectations .

• China remains an outlier among global central banks, having loosened monetary policy to shore up a faltering recovery but further rate cuts would widen the yield gap with the United State.

• GBP/AUD drops below the 14 DMA, slide halts at the 1.9023 (23.6% fib),break below will accelerate towards  1.8950  level.

• Technicals are favouring bearish sentiment as RSI is at 45 and the pair is trading below   5,10 & 11-DMAs.

• Immediate resistance is located at 1.9113(14DMA), any close above will push the pair towards 1.9165(38.2% fib)

• Strong support is seen at 1.9023 (23.6% fib)and break below could take the pair towards 1.8925 (Nov 3rd low).

Recommendation: Good to sell  around 1.9100  with stop loss of 1.9250   and target price of  1.9020

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