FxWirePro: GBP/AUD rallies above 1.8600 but reversal is likely

• GBP/ AUD staged a sharp recovery on Thursday as reduced COVID-19 angst helped sterling brush aside Brexit doubts.

• GBP/AUD rallied just shy of 5 DMA resistance at 1.8670 in Asian session but retraced lower in New York session to 1.8632.

• The cross pairs outlook remains bleak, despite recent recovery attempts. Only a break and close above 23.6% fib at 1.9130, will shift the bias higher.

• Technical signals show the pair could lose more ground in the short-term as RSI is at 32,while moving averages and MACD are trending lower. 

• Immediate resistance is located at 1.8685 ( 5 DMA), any close above will push the pair towards 1.8850 (11 DMA).

• Immediate support is seen at 1.8500  (Psychological level) and break below could take the pair towards 1.8384 (Lower BB).

Recommendation: Good to sell below 1.8800, with stop loss of 1.9130and target price of 1.8500