FxWirePro: GBP/AUD inches higher on profit-taking but setup is negative
• GBP/AUD recovered some ground on Thursday as combination of profit-taking on oversold trades helped recover some ground.
• GBP/AUD fell as low as 1.8327 before buyers returned. GBP/AUD moving higher and is sitting around 1.8472.
•Support at 1.8434 holding but break would warn of correction.
• Technical signals are bearish as RSI is at 43, daily momentum studies 10,11 and 14 DMAs are trending down.
• Immediate resistance is located at 1.8525 ( 50%fib), any close above will push the pair towards 1.8608 (61.8%fib).
• Strong support is seen at 1.8434 (38.2% fib ) and break below could take the pair towards 1.8327 (23.6%fib).
Recommendation: Good to sell around 1.8480, with stop loss of 1.8560 and target price of 1.8400