FxWirePro:GBP/AUD downside pressure is building, chances of a bigger collapse to key fibo support grows
• GBP/AUD slipped lower on Tuesday as Australian dollar was boosted after RBA decided not to put its taper plans on hold.
• The RBA surprised the market by not reversing its decision to reduce bond purchases. The RBA statement was relatively upbeat insisting economy will recover back to normal once coronavirus lockdowns ease.
• 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.
• Technical are bearish, daily RSI is turning lower, daily momentum studies 5 and 9 DMAs are trending south.
• Immediate resistance is located at 1.8844 (38.2%fib ), any close above will push the pair towards 1.8943 (Higher BB).
• Strong support is seen at 1.8755 (50%fib ), and break below could take the pair towards 1.8672 (61.8%fib).
Recommendation: Good to sell on around 1.8840, with stop loss of 1.8950 and target price of 1.8730