FxWirePro: GBP/AUD falls to three-week low on new UK COVID rules, good to sell on rally
• GBP/AUD declined sharply on Wednesday as sterling attracted seller on news that UK government was set to announce new COVID-19 restrictions.
• Media outlet reported that the UK could put in place stricter COVID measures starting Thursday, including a recommendation to work from home.
• The is pair heading towards the 23.6%fib , as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 46, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.8494 (38.2%fib ), any close above will push the pair towards 1.8543 (21DMA).
• Strong support is seen at 1.8445(Daily low) and break below could take the pair towards 1.8386 (23.6%fib).
Recommendation: Good to sell on around 1.8470, with stop loss of 1.8580 and target price of 1.9380