• GBP/AUD declined on Thursday as surging energy prices boosted Australian dollar.
• Australian dollar was also supported by higher bond yields, with the 10-year yield up 36 basis points in the last 10 sessions to a four-month peak of 1.599%.
• The is pair heading towards the lower bollinger band, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 39, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.8648(5 DMA ), any close above will push the pair towards 1.8703 (38.2% fib).
• Strong support is seen at 1.8593 (23.6%fib) and break below could take the pair towards 1.8526 (Lower BB).
Recommendation: Good to sell around 1.8630, with stop loss of 1.8700 and target price of 1.8560
