FxWirePro: GBP/AUD repeatedly capped by 55 DMA, vulnerable to more downside

• GBP/AUD dipped on Tuesday, as economic fallout from the lockdown and Brexit concerns weighed on British pound. 

• The government declared the lockdown that has paralysed much of Britain’s economy, impact on the economic outlook.

• At GMT 13:40, the pair  already trading lower on the day, extended its drop to hit $1.9483, a 1-week  low, and was last down 0.46% on the day  .

• Any upside is like to be limited as barrier at 1.9555 (Trendline) is set to restricting higher move.

• Technical signals are bearish as RSI is at 38, daily momentum studies  5, 9 and 10 DMAs are trending down.

• Immediate resistance is located at 1.9555 (Trendline), any close above will push the pair towards 1.9730 (21 DMA).

• On the downside, strong support is seen at 1.9420 (50 DMA) and break below could take the pair towards 1.9342 (Lower BB).

Recommendation: Good to sell below 1.9550, with stop loss of 1.9750 and target price of 1.9000.