FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch (EURUSD and AUDUSD) for the day)
FxWirePro: GBP/AUD falls ahead of RBA rate decision, good to sell on rally
• GBP/AUD declined on Monday as Australian dollar strengthened against pound ahead of expected rate hike by Australia's central bank(RBA).
• Australia’s central bank will likely hike interest rates by another half-point on Tuesday.
• Over a 70% majority of economists, 21 of 29, in a poll predicted the RBA would hike its cash rate by half a point to 2.85% at its Oct. 4 meeting.
• The pair dropped to test 1.7243(38.2% fib ). A break under 38.2% fib would unmask 1.7050 level .
•Immediate resistance is located at 1.7516(Higher BB ) , any close above will push the pair towards 1.7608 (23.6% fib).
• Strong support is seen at 1.7243(38.2% fib ). A break below could take the pair towards 1.7056 (5DMA ).
Recommendation: Good to sell around 1.7380, with stop loss of 1.7490 and target price of 1.7280