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FxWirePro: GBP/AUD retreats to daily low despite upbeat UK construction data
• GBP/AUD declined on Monday as fears that the EU and Britain might not reach a trade deal before-year end influenced pound's drop.
• Traders expect more clarity by the end of July on whether Britain will agree a trade deal with the European Union.
• On the data front,UK Construction Purchasing Managers’ Index (PMI) rebounded to 55.3 from 28.9 in May.
• The pair dropped to test 1.7886 (23.6% fib ). A break under 1.7886 would unmask 1.7828 (Lower BB ).
• Technical signals show bearish momentum , the 5 DMA and 9 DMAs trend south, while RSI is heading south at 31.
• On the upside, immediate resistance is located at 1.7974 (5 DMA ), any close above will push the pair towards 1.8026 (14 DMA ).
• On the downside, immediate support is seen at 1.7886 (23.6% fib ) and break below could take the pair towards 1.7828 ( (Lower BB ).
Recommendation: Good to sell around 1.7900, with stop loss of 1.8000 and target price of 1.7800.