FxWirePro: 200-DMA caps upside in GBP/AUD, break below 61.8% Fib to see further weakness

GBP/AUD chart on Trading View used for analysis

• GBP/AUD bounces off 61.8% Fib support to close in the green on Monday's trade.
   
• The pair however remains capped below 200-DMA and we see further upside only on break above.
   
• Brexit woes continue to plague the British pound. Theresa May looks to have suffered numerous setbacks over the weekend.
   
• Brexit headlines are going to feed the volatility in sterling over the coming days. GBP/AUD set to continue last week's declines.
   
• Momentum studies are bearish, Stochs and RSI sharply lower, MACD supports downside.
   
• Next major bear target below 61.8% Fib lies at 1.7665 (July 9 low). Violation there could see further weakness.
   
• On the flipside, retrace and close above 200-DMA could see some bounce back.

Support levels - 1.7835 (61.8% Fib), 1.7776 (Lower BB), 1.7665 (July 9 low), 1.7592 (78.6% Fib)

Resistance levels - 1.7945 (nearly converged 5 and 200-DMA), 1.80 (50% Fib)

Call update: Our previous call (https://www.econotimes.com/FxWirePro-GBP-AUD-declines-for-6th-straight-week-slips-below-200-DMA-eyes-618-Fib-stay-short-on-upticks-1456523) has hit TP1.

Recommendation: Book partial profits at lows. Watch for break below 61.8% Fib for further weakness.

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.