FxWirePro- Currency Strength Index (4- Hour chart)- Currency pairs to watch(EURUSD and GBPJPY) for the day
FxWirePro: GBP/AUD reverses recent rally, bias back to downside
• GBP/AUD declined on Wednesday as investors wagered on ever-more aggressive rises in global interest rates.
• Investors are wagering the Reserve Bank of Australia (RBA) will have to follow its U.S. counterpart, even though policy makers have long argued that any move was unlikely this year.
• The is pair heading towards the lower 50%fib, as near term direction of the pair is likely to be driven by current price action.
• Immediate resistance is located at 1.8922 (38.2%fib ), any close above will push the pair towards 1.8963 (11th Jan high).
• Strong support is seen at 1.8847 (50%fib ), and break below could take the pair towards 1.8833(14DMA).
Recommendation: Good to sell on around 1.8850, with stop loss of 1.8935 and target price of 1.8800