FxWirePro: GBP/AUD outlook weaker on renewed downside pressure
• GBP/AUD declined on Monday as upbeat economic data from China and higher commodities prices boosted Australian dollar across the board.
• Oil prices rebounded from a six-month low it hit on Friday as positive economic data from China and the United States fed hopes for demand.
• Selling pressure will remain in the short-term, only a move above 1.7490( 38.2% fib) strong resistance will shift bias higher.
• From a technical viewpoint, the moving averages are pointing downwards, while the RSI is strongly bearish at 39.
Immediate resistance is located at 1.7381 ( 14DMA), any close above will push the pair towards 1.7499 ( 38.2% fib).
• Strong support is seen at 1.7279(23.6% fib ) and break below could take the pair towards 1.7227 (Lower BB).
Recommendation: Good to sell around 1.7310 with stop loss of 1.7410 and target price of 1.7220