FxWirePro: GBP/AUD pauses downside at 55-EMA ahead of UK services PMI, good to stay short on upticks

GBP/AUD chart on Trading View used for analysis

• GBP/AUD slumps lower ahead of UK services PMI data, trades 0.45% lower on the day at 1.7956 at 0610 GMT.
   
• Traders remained cautious before Jan UK services purchasing manager index (PMI) release after poor showing at construction PMI.
   
• Recent data from the UK haven’t been impressive and Brexit progress is minimal. Pound may come under renewed pressure if the UK services PMI disappoints.
   
• On the other side, Aussie buoyed after RBA stood pat and sounded optimistic about the jobs market.
   
• GBP/AUD  recovery rejected with a 'Gravestone Doji' formation on daily charts.
   
• The pair has paused downside at 55-EMA support currently at 0.7956. Break below will see further weakness.
   
• Bears' next major target lies at 200-DMA at 1.7880. Violation there will see downside till 61.8% Fib at 1.7710.

Support levels - 1.7956 (55-EMA), 1.7880 (trendline and 200-DMA), 1.7710 (61.8% Fib)

Resistance levels - 1.8028 (5-DMA), 1.8053 (21-EMA), 1.8212 (23.6% Fib) 

Recommendation: Good to go short on upticks, SL: 1.8125, TP: 1.79/ 1.7880/ 1.7710

For details on FxWirePro's Currency Strength Index, visit http://www.fxwirepro.com/currencyindex.