FxWirePro: GBP/AUD reverses recent rally, bias back to downside

• GBP/AUD declined on Tuesday as Australian dollar strengthened as investor sentiment lifted   after struggling Chinese property giant Evergrande said it would make an upcoming bond coupon.

• However, some concerns remained as investors  realised it was still not known whether the developer would beable to pay the coupon.

• At GMT 22:28, the pair was trading 0.11% lower at 1.8810, after hitting daily low at 1.8753.  .

• From a technical viewpoint, the moving averages 5,9 DMA’s are pointing downwards, while the RSI  is flat at 50.

• Immediate resistance is located at 1.8838( 5DMA), any close above will push the pair towards 1.8894 ( 23.6%fib).

• Strong support is seen at 1.8749(38.2%fib ) and break below could take the pair towards 1.8629(50% fib).

Recommendation: Good to sell around 1.8810, with stop loss of 1.9000 and target price of 1.8760