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FxWirePro:GBP/AUD gives back chunk of early gains, eyes another drop

• GBP/AUD retreated on Friday from daily high  as  the pair was weighed down by political and economic turmoil in UK.

• The pair retreated  as unfavorable macroeconomic backdrop   overshadowed concerns about politics after Prime Minister Boris Johnson announced his resignation. 

• Bulls will need a clear 1.7717 ( 61.8% fib) to take greater control, failure to break higher will spur fresh downward momentum.

• Technical signals are mixed as RSI is at 46, daily momentum studies  5, 30 DMAs are trending north. 

• Immediate resistance is located at 1.7590(50%fib ), any close above will push the pair towards 1.7623 (5DMA).

• Strong support is seen at 1.7458 (38.2%fib) and break below could take the pair towards 1.7419 (Lower BB).

Recommendation: Good to sell around 1.7560, with stop loss of 1.7670 and target price of 1.7480.

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