FxWirePro: GBP/AUD close below key fibo adds to the bearish bias, good to sell on rally

• GBP/AUD declined on Wednesday  as the prospect of a Democrat-controlled U.S. Senate drove capital flows like Australian dollar.

• After trading hitting high at 1.7933 it pushed down to 1.7810,Heading into the US afternoon it was last trading at 1.7824.

• The is pair heading towards 50%fibonacci retracement and later towards lower BB, as near term direction of the pair is likely to be driven by current price action.  

• Technical are bearish, daily RSI is negative at 49, daily momentum studies  9 and 10 DMAs are trending down. 

• Immediate resistance is located at 1.7873 (21 DMA ), any close above will push the pair towards 1.7942 (38.2% fib).

• Strong support is seen at 1.7790 (50%fib) and break below could take the pair towards 1.7753 (Lower BB).

Recommendation: Good to sell  around 1.7830, with stop loss of 1.8000 and target price of 1.7750