FxWirePro:GBP/AUD outlook weaker on renewed downside pressure
• GBP/AUD declined on Wednesday as investor appetite to look for returns outside the U.S. currency helped the risk-sensitive aussie burst higher.
• The pair, already trading lower on the day, extended its drop to hit 1.7841, a three week low, it was last down 0.79% on the day.
• Technical signals show the pair could lose more ground in the short-term as RSI is at 39 bearish, daily momentum studies 9, 10 and 11 DMAs are trending down.
• Immediate resistance is located at 1.7852( 50%fib), any close above will push the pair towards 1.7947 (61.8%fib).
• Strong support is seen at 1.7797 (Lower BB) and break below could take the pair towards 1.7746 (38.2%fib).
Recommendation: Good to sell around 1.7840, with stop loss of 1.7920 and target price of 1.7760