• GBP/AUD declined on Monday as last week’s weak UK retail sales data and BoE rate cut prospects weighed on sterling.
• Interest rate futures on Monday fully priced in a first quarter-point rate cut by the Bank of England for August and see at least two cuts before the end of the year
• The is pair heading towards the 23.6% fib support, as near term direction of the pair is likely to be driven by current price action.
• Technical are bearish, daily RSI is negative at 41, daily momentum studies 9 and 10 DMAs are trending down.
• Immediate resistance is located at 1.9202 (38.2% fib), any close above will push the pair towards 1.9274(50% fib).
• Strong support is seen at 1.9119(23.6% fib) and break below could take the pair towards 1.9075 (Lower BB).
Recommendation: Good to sell on around 1.9180, with stop loss of 1.9280 and target price of 1.9100