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FxWirePro:GBP/AUD unlikely to invite any further strength, good to sell on rally

• GBP/AUD initially edged lower on Monday  but recovered some  ground as caution  set in ahead of an Australian central bank policy meeting.

• The Reserve Bank of Australia (RBA) is expected to address its  stimulus package at a policy meeting on Tuesday, but is likely to remain dovish  overall, given the recent   coronavirus lockdowns in the country.

• Pair traded in a quiet 1.8358/1.8406  range and was last trading at 1.8394 into the US afternoon.  

• Technical signals are mixed as RSI is at 53, daily momentum studies  10,11 and 14 DMAs are trending down. 

• Immediate resistance is located at 1.8409 ( 38.2%fib), any close above will push the pair towards 1.8500 (Higher BB).

• Strong support is seen at 1.8355(21DMA ) and break below could take the pair towards 1.8318  (50%fib).

Recommendation: Good to sell   around 1.8400, with stop loss of 1.8470 and target price of 1.8320.
 

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