FxWirePro:GBP/AUD gives back chunk of early gains, eyes another drop

• GBP/AUD retreated from daily high on Monday as currency traders focus  turned on  outlook for UK monetary policy.

• BoE  last week held its main interest rate steady at a 16-year high of 5.25%, but the prospect of a future rate cut moved closer as some policymakers said their thinking was now  finely balanced.

•This week, the UK will release its Gross Domestic Product (GDP) numbers that will provide more insight into the state of the British economy.

• GBP/AUD failed to close above 50%fib resistance, giving bears hope.That could see the pair weaken in the near term

• Technical signals show the pair could gain more ground in the short-term as RSI is bearish, daily momentum studies  5  and 9 DMAs are trending down.

• Immediate resistance is located at 1.9096 (50%fib), any close above will push the pair towards 1.9187 (61.8% ).

• Strong support is seen 1.9021(38.2%fib) and break below could take the pair towards 1.8965(Lower BB)

Recommendation: Good to sell around 1.9060, with stop loss of 1.9160 and target price of 1.9000