FxWirePro: GBP/AUD intraday downside momentum strong after downbeat UK preliminary PMI readings

• GBP/AUD declined on Thursday as increased COVID 19 death rate in UK and down beat economic data weighed on British pound. 

• The IHS Markit/CIPS Flash UK Composite Purchasing Managers’ Index (PMI) fell to a new record low of 12.9 from 36.0 in March.

• Selling pressure will remain in the short-term, only a move above 1.9584 (Trendline)  strong resistance  would indicate the weakness in pair has run out .

• Technical signals show the pair is set to lose ground in the short-term as RSI is at 35 bearish, daily and weekly 5, 10 & 21 MAs heading lower  .

• Immediate resistance is located at 1.9443 (100 DMA), any close above will push the pair towards 1.9584 (Trendline).

• On the downside, strong support is seen at 1.9338 (Daily low) and break below could take the pair towards 1.9191(Lower BB).

Recommendation: Good to sell around 1.9400, with stop loss of 1.9580 and target price of 1.9000.