FxWirePro: GBP/AUD edges higher after upbeat UK Halifax HPI data, further gains only on break above 20-DMA at 1.6526

• UK house prices rose 0.4% in July after a 0.9% contraction in the previous month, the biggest climb since the end of 2016 and beating forecast of 0.2% growth.
   
• Better-than expected UK Halifax HPI data buoyed GBP, pushing GBP/AUD higher.
   
• The pair hit session highs at 1.6511, but finds stiff resistance at 20-DMA at 1.6526.
   
• GBP/AUD failed to hold break above 200-DMA, slips lower after dovish BoE with 'Shooting Star' formation.
   
• Intraday bias bearish as long as pair holds below 20-DMA. Technical indicators do not show clear directional bias.
   
• We see scope for bullish reversal only on decisive break above 200-DMA at 1.6689. Test of trendline at 0.69 then likely.

Support levels - 1.6427 (Jan 31 low), 1.64, 1.6330 (trendline), 1.63 (July 27 low)

Resistance levels - 1.6520 (5-DMA), 1.6526 (20-DMA), 1.66, 1.6689 (200-DMA)

Call update: Our previous call (http://www.econotimes.com/FxWirePro-GBP-AUD-capped-below-20-DMA-Pound-extends-BoE-induced-sell-off-838302) has hit TP1.

Recommendation: Bias lower as long as pair holds below 20-DMA. Stay short.

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