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FxWirePro:GBP/AUD rallies above 1.8000 but reversal is likely

• GBP/AUD strengthened on Monday as   faster carry out of COVID-19 vaccinations across Britain and   lessening assumptions for negative interest rates boosted sterling.

• Traders will watch this week PMI data for the United Kingdom, along with data on the labour market, infaltion and retail sales.

• GBP/AUD remains vulnerable, only a break and daily close above 1.8250 (61.8% fib) will shift bias to the upside.

• Technical are bearish, daily RSI is negative at 49, daily momentum studies 14  and 21 DMAs are trending down. 

• Immediate resistance is located at 1.8020 (21DMA ), any close above will push the pair towards 1.8095 (61.8%fib).

• Strong support is seen at 1.7975 (50%fib) and break below could take the pair towards 1.7858(38.2%fib).

Recommendation: Good to sell on  around 1.8020, with stop loss of 1.8100 and target price of 1.7920
 

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