FxWirePro: AUD/USD plummets on US dollar strength, set for deeper correction after recovery rejected at 21-EMA
FxWirePro: GBP/AUD drops to threaten 1.8000 after UK May GDP misses expectations
• GBP/AUD declined on Tuesday as sterling was weighed down after data showed UK May GDP missed estimate.
• Gross domestic product rose by 1.8% in May after falling by a record 20.8% in April.
• The is pair is heading towards the (23.6% fib ), as the UK news turns more negative. Only a break and daily close above 50% fib at 1.8267 will shift bias to the upside.
• Technical signals are bearish as RSI is at 40, daily momentum studies 5, 9 and 10 DMAs are trending down.
• On the upside, immediate resistance is located at 1.8032 (11 DMA ), any close above will push the pair towards 1.8103 (38.2% fib).
• On the downside, immediate support is seen at 1.7906 (23.6% fib ) and break below could take the pair towards 1.7843 (Lower BB).
Recommendation: Good to sell around 1.8010, with stop loss of 1.8110 and target price of 1.7900.